Wednesday, February 14, 2007

NASDAQ Technical Picture - Broad Based Rally on Inflation Relief

Bernanke's statements regarding diminished inflation fears sparked a broad based rally across all U.S. markets. All tech sectors participated, paced by semiconductors. Resistance is just 12 points away, so I'd like to see a pullback to support on the 60 minute chart, before we attempt to take out 2500. I see a triangle forming here and I'm not optimistic that we will succeed at 2500 on the second attempt.
Tomorrow's economic calendar is loaded starting with import/export and initial claims at 8:30; industrial production and capacity utilization at 9:15; and Philadelphia Fed at noon.


Anonymous said...

Why are you not optimistic that Nas will cross 2500 on second attempt? Looks like ascending triangle to me, but then I maybe wrong.

Jamie said...

Agreed, we have an ascending triangle, but my gut feeling is that we won't break through until the third, maybe fourth attempt.

Unless we get a major catalyst, I don't see any momentum. Today's rally was exceptional. The ADX line is drifting lower everyday.

I'm a bull, I hope we do break through soon, but I'll be surprised.