Monday, October 23, 2006

NASDAQ Technical Picture - Cup & Handle on the Monthly Timeframe

After gapping down on the open, the NASDAQ managed to rally 34 points before trailing off in the afternoon. Better earnings and lower oil sparked some buying interest shortly after the open, however, the NAZ was by far the weakest of the major equity markets. AH we had some positive reports from NFLX and AMGN.

Earnings tomorrow include TZOO before the bell and AMZN after hours. The two day FOMC meeting begins tomorrow with a statement scheduled for 2:15 EST on Wednesday afternoon.

We're not out of the woods yet, but it appears that we have a bullish cup & handle pattern on the NASDAQ's monthly timeframe. Still, we have a lot of resistance dating back to 1999 and 2001 before we can declare victory.

No comments: