Ker-plunk!

Well Traders, THAT was a pleasant surprise! The $NDX was up almost $7 points at the get go, only to freefall the rest of the day. The index ended up falling almost $25 points to end the day at $1,777.75. That is only $2 points from my sweet spot...sweet!

So what does this mean? Well, for one thing, the 30DMA once again comes into play as resistance since the $NDX has fallen below it today. Add to that, another Bearish Engulfing Pattern (highlighted in Yellow) has formed, indicating there may be more downside ahead.

The MACD and STO are in a more Bullish position, than Bearish, but today's action indicates that isn't always an accutate short-term indicator. I still fully expect the index to bounce from around here at some point in the near future. As I mentioned in an earlier pots, I still feel the "support area" indicated on the graph will hold up, and we'll move from there. Notice that the $1,771 area is also still holding, and may at as support. We'll wait and see.

At this point, there would have to be some really incredible action for this trade to fall apart. That is not to say it isn't possible, it just isn't as likely. A moderate move on friday will lead me into a nice weekend burnoff, further putting time value on my side, or at least the erosion of it.

Happy Trading!