$1,771 Support

Well Traders, another down day on the $NDX, a GREAT way to start my weekend! Yesterday I mentioned a Bearish Engulfing Pattern, which was the second one in 5 days. Today, the $NDX was in a pretty good struggle, but at the end of the day, the Bears won. The index finished down just over $4 points to end the day at $1,772. At this point, it looks like $1,771 is going to hold as support. The STO and MACD are indicating that an uptrend in close at hand, but only next week will confirm that. This being Friday, I get two more "free" days of time-value burn off.

I am beginning to sense another Ascending Channel may be forming here, though at a substantially shallower climb that the previous one. I have already indicated the upper resistance of the channel and marked it as "New Diagonal Resistance" on the chart. Conceivably, a new bottom may be drawn using 12/26 (or 1/3 to be extreme), and whatever the bottom of these next few days is. Should that occur, then that sets up March's Iron Condor beautifully because shallow to neutral trends are an Iron Condor's best friend!

I am off to Salt Lake City on Saturday for further training at INVESTools. I should have some updates next week as well.

Have an enjoyable weekend!

Happy Trading!