Sunday, September 14, 2008

$NDX Update for 09.14.2008

Monthly chart shows a selling signal/pattern in place (lower high). Sellers came out in force the first two weeks of the month of September 2008, with the bears managing to take the index below the up trendline in place, the 8ema as well asthe 34ema. Look for for continued downside weakness.

Weekly chart currently shows a three wave pattern down into .886 fib support. This is normally a bullish pattern (gartley butterfly), so look for next week's price action for clues as to whether it will play out or not.
Daily chart shows the bulls managed to come out in force right at the .886 fib level. Look to Monday's price action to see whether or not we get any traction to the upside. IF the bulls manage to hold their ground and head higher, THEN look to the .618 fib level as first upside target.

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