Thursday, March 08, 2007

NASDAQ Technical Picture - No Follow Through

Although we added 13 points on the session, the NASDAQ actually closed lower than it opened and spent much of the second half of the afternoon in sell mode. A very bullish open with failure to follow through ahead of tomorrow's jobs data. Resistance will be difficult to regain with many of the leading stocks on the cusp of breaking down. However, we have yet to retrace 38% of the first leg down, so the data tomorrow may cast the market's fate. Remember that before, bad news was good news as far as inflation and interest rates were concerned, but going forward, we need "good news is good news" in order to justify lofty stock market prices. I don't want to over analyse, I'll just say that I have a strategy for long and short. I hope that the lines are clear, not like today, long and short.

Economic Calendar: Non-farm payrolls, Unemployment Rate, Hourly earnings, Avg. workweek, and Trade Bal. at 8:30; and Wholesale inventories at 10:00.

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