The Nasdaq is in a stage three consolidation and once again has closed below its 50 day SMA. It is normal during stage three for price to weave in and out of the 50 period SMA. The Nasdaq shed almost 20 points today on lower than average volume. All tech sectors were weak coming out of the three day weekend. The SOX was the weakest sector with some technical damage to specific names which I will cover in my next post. Oil seems to be in control, however, I believe this to be a tenuous situation because inventories keep increasing and don't justify these prices.
Tuesday, February 21, 2006
Nasdaq Technical Picture
The Nasdaq is in a stage three consolidation and once again has closed below its 50 day SMA. It is normal during stage three for price to weave in and out of the 50 period SMA. The Nasdaq shed almost 20 points today on lower than average volume. All tech sectors were weak coming out of the three day weekend. The SOX was the weakest sector with some technical damage to specific names which I will cover in my next post. Oil seems to be in control, however, I believe this to be a tenuous situation because inventories keep increasing and don't justify these prices.
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