Sunday, September 28, 2008

$NDX Update for 09.28.2008


Monthly chart shows aggressive selling by the bulls, as they managed to take the index back down to the March 2008 low. The index remains below the up trendline in place, and also below both the 34 and the 8emas. No buy signal/pattern evident on this timeframe.

Weekly chart shows the bears managed to take back about half the gains made the previous week. The index remains below all key moving averages on this timeframe, as well as below the small LIS of 1,761.08 (old support becomes new resistance). No buy signal pattern evident on this timeframe.

Daily chart shows aggressive buying with Friday's trading session, with buyers showing up at the open of a gap down. The bulls managed to close the session near its highs for the day. IF we have 5 waves down, THEN look for a retracement of the last move. While we have no buy signal/pattern evident on this timeframe, Friday's price action gives a hint to look for follow through come Monday. IF the buyers start showing up, THEN look for a retracement of the last leg down from 1,773.83.

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