Sunday, September 21, 2008

$NDX Update for 09.21.2008


Monthly chart shows a lower low made, with the index closing below the prior month's low. bottoming tail indicates initial buying from the aggressive bulls, who found temporary support.

Weekly chart shows a bullish gartley pattern created with the lower low made into the 1.618 fib area.

Daily chart shows aggressive traders gapping up the open in their haste to enter/exit their positions after the temporary banning of short selling in 799 financial stocks was announced. Once can also make the case that we have 5 waves down from the August 15, 2008 high, hence the bounce/short covering/retracement was expected. The September 19, 2008 low was made with regular divergence. No buy pattern/signal evident on this timeframe as of yet.

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