Sunday, August 03, 2008

$NDX Update for 08.02.2008

NASDAQ 100 INDEX - $NDX

Monthly chart shows the index to be below its 8ema, but still managed to be slightly above its 34ema. Aggressive bulls managed to close the month above the up trendline in place. Despite the buying from the early bulls, they were not able to gain back much ground lost to the bears the month before. This indicates weakness to me, and would expect continued selling going forward as likely.

Weekly chart better shows the indecision between the bulls and the bears the past four weeks. This is looking more and more like consolidation, and would expect a move lower once consolidation is complete. Index is currently below all key moving averages on this timeframe.

Daily chart better shows the indecision between the bulls and the bears, and a consolidation pattern is being traced out by the trading activity. No buy signal/pattern evident on this timeframe. Look for a test of the March 2008 as more likely, the longer we remain in consolidation/trading range.

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