Monday, March 05, 2007

NASDAQ Technical Picture - Groundhog Day

Another gap lower on the open, followed by a gap fill and weakness in the afternoon on above average volume - hence the reference to Groundhog Day. Today we carved out an inverted hammer. Unlike a regular hammer, the inverted hammer requires confirmation in order to complete the candlestick reversal signal. The ideal scenario would be an open above the inverted hammer's real body with a higher close, or a bullish engulfing bar.

We have positive divergence on the 60 minute timeframe and the McClellan Oscillator is extremely oversold. Momentum is with the bears but we are overdue for a bounce.

Economic calendar for tomorrow: Productivity at 8:30 and Factory Orders at 10:00


Anonymous said...

great analysis on the indices Jamie.


Joao Henrique said...

Hi Jamie,

"Groundhog Day", I would add to my favorite movie list :) Starring Bill Murray and Andie MacDowell.

Jamie said...

Thanks Basim,

Futures are up 17 points this morning, so we could see the beginning of a reversal.

Jamie said...

Hey Jaoa,

Yes, "Groundhog Day" is one of my favorites too and almost made the top 20 list. In fact it is such a popular film that the term -Groundhog Day - has entered the common vernacular as a reference to an unpleasnat situation that repreats itself.