Thursday, February 22, 2007

NASDAQ Technical Picture - January High Tested as Support

After gapping higher on the open, the NASDAQ spent most of the morning in a free fall. It successfully retested the January high as support late in the morning and after a lengthy chop-fest, it managed to rally into the close. In so doing, it carved out a doji-like candlestick which is indecisive. I wouldn't be surprised to see some range trading between 2510 and 2530 over the next few sessions as the market consolidates its recent gains. However, at certain points in today's session, it felt like there was some programmed selling taking over. Just a reminder to be cautious with the doji stick in play!

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