Friday, March 10, 2006

Nasdaq Technical Picture

The Nasdaq carved out a medium range bar in the lower half of yesterday's bearish engulfing candle on lacklustre volume. After breaking yesterday's low in the first half hour of trade, the Nasdaq managed to end the day up a respectable 12 points. However , the story basically remains the same. We continue to make lower highs and lower lows. The only glimmer of hope for a reversal is the positive divergence of the oscillators on the 60 minute chart. Although the SOX was the best perfomer in the morning, it quickly managed to reverse in the afternoon heading south to close the day in the red. The only good thing I say about the SOX is that it is sitting on support and today's narrow body has the potential to be a star. The best performing tech sector was NWX. NDX winners: ISRG, JOYG, and PCAR; losers BRCM, JDSU, MRVL.

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