Will the Nasdaq Channel Hold? 052608

Are you ready for the shorter 4-day trading week? I know I always enjoy the 3-day weekends, and this one was no exception. The market definitely gave a good shot of fear into the market last week. If you look at the daily chart of the Nasdaq it doesn’t look as scary as it may have felt. The bottom trendline extending back to mid-March provided a small bounce to end Friday’s trading.

Traders may take it down to the trendline that stretches from the 10-31-07 high. That’s roughly around the 2380 area where the 50 day moving average currently sits.