$NDX Update for 05.17.2009

NASDAQ 100 INDEX - $NDX

Monthly chart shows the bears managed to erase any gains made by the bulls at the start of the month so far. The bulls managed to find support right at the 8ema. Will they be able to hold onto it?

Weekly chart shows second week of weakness and increasing selling pressure. Bulls found resistance right at the 54ema. Look for continued weakness and a retracement of the entire move up from the March 2009 low and possibly the November 2008 low.

Daily chart shows continued weakness and profit-taking right at the 1.618 fib retracement level. The bears managed to close the week with the index below 8ema and the 200sma, as well as a break below the up trendline in place. Look for continued weakness and a retracement of the entire move up from the March 2009 low and also the November 2008 low. Price action in the next week or so should better reveal whether this is a breather before the next move up, or whether the top has been put in before we head to a lower low.