Very nice bullish action in the morning, but by mid-afternoon, the bears came back with a vengence. There was no bounce to speak of into the close. Volume of 2.34 billion shares was higher than yesterday so this counts as another distribution day. Most of the tech sectors were down. One exception was the networking sector which notched a new high but formed a doji with a long upper shadow. After closing last week's gap, the Nasdaq carved out a bearish engulfing pattern and even though we are oversold, it looks and feels like we are going lower from here.
Thursday, February 09, 2006
Nasdaq Technical Picture
Very nice bullish action in the morning, but by mid-afternoon, the bears came back with a vengence. There was no bounce to speak of into the close. Volume of 2.34 billion shares was higher than yesterday so this counts as another distribution day. Most of the tech sectors were down. One exception was the networking sector which notched a new high but formed a doji with a long upper shadow. After closing last week's gap, the Nasdaq carved out a bearish engulfing pattern and even though we are oversold, it looks and feels like we are going lower from here.
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