NASDAQ Technical Picture - Bulls Defend 38% Retracement of the July - February Rally

The first chart shows that we tagged the 38% retracement level of the July - February rally and reversed from there. So basically the bulls came in on higher volume to defend their turf at a key technical level. A quick review of the Qs intraday, showed that volume was much higher on the buy side than the sell side. We also note some positive divergence of the RSI on lower prices, however, the ADX clearly favors the bears.

Economic calendar: Tomorrow's calendar is loaded starting with PPI, Initial Claims and NY Empire State Index at 8:30; Net Foreign Purchases at 9:00 and Philadelphia Fed at noon.