Saturday, July 26, 2008

$NDX Update for 07.26.2008


Monthly chart shows indecision between the bulls and the bears. While the bulls found support to enter into the market, they can't seen to gain much traction to go much higher. Look to lower timeframe charts for better sort term direction.

Daily chart shows possible consolidation wave forming. Earlier in the week, there was a higher low and a belt hold candle pattern to signal a stronger move up, but the bulls didn't get very far before the bears started selling in earnest. No clear signal/pattern one way or the other. This leads me to be cautious that we would be stuck in consolidation/correction before next leg lower.

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