NDX 3 Year Chart

The NDX has been extremely strong since July 06, and in June of 07 it broke out of the longer term channel formed on the weekly chart as seen below by the black dotted line. After a big run up in July of this year, there was a 200+ point correction that then reversed and created this last 11 week bull rally in the NDX. The index has been UP 9 of those 11 weeks. This week was a much anticipated pull back that although violent, doesn't look that bad in the context of the Weekly Chart -- However, by looking at the weekly it also seems plausible that the NDX could continue to fall over the next couple of months to retest the channel line again as it did in August.

Also interesting to note is that the NDX has never gone longer then 6 months (in the last 3 years) without retesting the 30MA on the weekly chart. Keeping with that trend we might look for the NDX to retest the 30MA within the next 8 weeks.

NDX Weekly Chart: