Sunday, September 07, 2008

$NDX Update for 09.07.2008


Monthly chart shows the bears came out in droves the first week of September, and managed to take back all the gains made the last two months. The index is currently below all key moving averages and also closed below the up trendline in place. Bulls found short term support off a key LIS where "old resistance becomes new support". Will this support hold, given all that is happening in the financial markets? Only time will tell. At this point, there is no buy signal/pattern evident on this timeframe.

Weekly chart shows the major change in trader sentiment last week. There is a bullish gartley butterfly type pattern on this timeframe. IF this gartley butterfly plays out, THEN look for upside target at the .618 fib level, or 1935 area.

Daily chart shows the early bulls came out on Friday's trading session. While they managed to hold short term support and managed to close the gap, they were unable to close the index above the close of Thursday's trading session. While there is no buy signal/pattern evident on this timeframe, Friday's trading leads me to believe that the market MIGHT consolidate before its next move. Look to Monday's open to see which way the market wants to treat the news of the Fannie Mae and Freddie Mac takeover.

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