The NASDAQ gapped up on the open and sellers came in almost immediately for some profit taking which was expected as we noted last night some sectors were looking pretty toppy. The worst sectors were networking and biotechs. The latter was due for some healthy profit taking and is still well positioned to move higher, but the networking sector cratered, giving it all back in one day. Leading the sector down were TLAB and JDSU with 16% and 8% losses respectively. Although we carved out a bearish engulfing bar, the 2050 pivot held on a closing basis. The NASDAQ observed the 20 EMA as resistance once again today, however, for the time being, the technical bounce is still in play.
Thursday, July 27, 2006
NASDAQ Technical Picture
The NASDAQ gapped up on the open and sellers came in almost immediately for some profit taking which was expected as we noted last night some sectors were looking pretty toppy. The worst sectors were networking and biotechs. The latter was due for some healthy profit taking and is still well positioned to move higher, but the networking sector cratered, giving it all back in one day. Leading the sector down were TLAB and JDSU with 16% and 8% losses respectively. Although we carved out a bearish engulfing bar, the 2050 pivot held on a closing basis. The NASDAQ observed the 20 EMA as resistance once again today, however, for the time being, the technical bounce is still in play.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment