Sunday, March 15, 2009

$NDX Update for 03.15.2009


Monthly chart shows the November 2008 support holding, with aggressive bulls stepping back into the market with a re-test of that support level. Look to lower timeframe charts to look for long entries should this buying continue.

Weekly chart shows that last week's trading session resulted in a bullish engulfing candle pattern, indicating that trader sentiment has changed from down to up, at least in the short term. On this timeframe, a higher low has been made, and so long as this low holds, we should see further upside movement.

Daily chart shows that a higher low has been put in place, and aggressive bulls have been stepping back into the market, taking the index higher, and at a minimum, to retrace the last move down from the February 2009 high. Instead of the bullish butterfly pattern being played out, we have bullish gartley butterfly pattern in place, indicating that, at least in the short term, the price movement should be up. First upside resistance area is the .618 fib level then the .786 fib level.

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