Sunday, August 31, 2008

$NDX Update for 08.31.2008

NASDAQ 100 INDEX - $NDX

Monthly chart shows that while the bulls managed a higher high over the month before, they were unable to close the month above July's high. The index remains below its 8ema on this timeframe, as profit-taking took back about half the gains made in August. Index remains stuck in trading range.

Weekly chart shows a lower high made, with sellers in control of last week's trading activity. So, on this timeframe, there is a sell signal in place.

Daily chart shows the increasing momentum to the downside, as the bears gapped down the open of Friday's open in their haste to exit their positions. The selling began at the open, and continued into the close. The index closed below its 8ema, 89sma and also 200sma. Look for continued weakness and a test of the July 2008 low as first downside target.

1 comment:

Richard said...

Intel manifested an abandoned baby candlestick on August 28, 2008; and fell parabolically lower on August 29, 2008, in large part on on Dell's 17% fall, as the PC maker sees a slowdown.

The Dollar Rally began July 15, 2008 and ended in stocks on August 11, 2008; yet the Dollar Rally itself continues strong for now with the Dollar trading above 77.

The chart of Intel communicates that the age of prosperity and consumer electronics is now over.

All I can say about Intel is lookout below.

Jack Chan of JC's Buy and Sell Signals, gave his sell signal on the Semiconductors, SMH, and the Nasdaq, QQQQ, this week.

The Proshares bear market ETFs SSG, and QID are in breakout.

Gold is going headed up.

Anthony V. Caldaro' chart of gold shows it has just completed an Elliott Wave 4 Down at $777.70, and is trading now at $815 to $835.

Gold is now in an Elliott Wave 5 up with price objective of $1,000.

While one could jump on board and go long SSG, or SDS, I recommend that one be invested 1/3 long SKF in a trust account, and 2/3 invested in gold at BullionVault and GoldMoney as protection against a systemic risk breakdown.