Charts courtesy of stockcharts.comThe NASDAQ ended the week on a bullish note but is down four points overall. Last week we noted two hammers/hanging men on the weekly timeframe and now we have three. We are currently in consolidation phase, despite continued bullish strength in the DOW and S&P. The intraday timeframe shows a clear lack of momentum on the upswing. On the daily timeframe, the ADX line is approaching 10, a level it has not seen since March 2005, leading into the May' 05 correction. The SOX is retesting its breakout point for the second time and my guess is that it will fail. The rally appears to be drawing final breath, however, it could remain like this for weeks, before the actual correction takes hold.
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