Saturday, July 19, 2008

$NDX Update for 07.19.2008


Monthly chart shows the market found support early last week right off a key LIS (old resistance becomes new support) at 1761 area. As it sits right now, the price action during the month of July has been met with indecision between the bulls and the bears. There is no buy signal/pattern on this timeframe as of yet, and the sell signal/pattern in place remains in effect.

Weekly chart better shows the weakness of the index. Price remains below all key moving averages, and we also have moving average crossovers. No buy signal/pattern as of yet on this timeframe.

Daily chart shows increasing weakness, as the bears gapped down the open on Friday's trading session, in their haste to exit their positions. The price action of the last three day's of trading created a similar pattern to the abandoned baby candle pattern. While it is not a true abandoned baby candle pattern by the strict definition, the sentiment is the same. This pattern suggests further weakness, and so any long positions should be viewed with caution until a better/stronger buy signal/pattern is formed.

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