Monday, November 06, 2006

NASDAQ Technical Picture - Bear Trap

It was no surprise that we rallied today given the flurry of M&A and the lack of any negative economic data. As noted here last night, we had positive divergence on the intraday timeframe and the selling late last week was tepid. The magnitude of the move, lead by technology, was due largely to a short squeeze. Volume was slightly higher on the session, however, in order for the bulls to reclaim control, we need more momentum.

No major economic data tomorrow. Earnings of interest this week: CSCO on Wednesday AH and ENER Thursday AH.

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