Sunday, April 08, 2007

NASDAQ Technical Picture - Weekly Update

A solid performance on the week for the NASDAQ. Thursday's low volume rally was particularly impressive, closing on the high of the day. There's not much in Friday's employment data to set the tone for next week with most metrics coming in higher than consensus.

The next challenge for the bulls is to break through the bearish gap resistance left over from the beginning of February's meltdown. It should be noted that a low volume rally is a sign of weakness. That's not to say, we are going to fall over right here, but it is something that I will be following closely as it could foreshadow a change in the long-term trend. No economic data until Wednesday.

4 comments:

Anonymous said...

HI jamie. What do you think of CMC here?
thanks for everything!

Basim

Jamie said...

Hi Basim,

CMC has formed a nice rounded base on the 15 minute timeframe. It attempted to take out the $32.31 resistance level on Thursday, but volume was not enough to sustain the break on a closing basis.

Now you need a high volume break of Thursday's high $32.44 or a pullback to support around $31.89.

Good trading.

Vtomer said...

hey jamie,

Sorry for not being here. Too much school work and sickness...anyways hope all is good with you...

vi

Jamie said...

Hi Vivek,

Hope you're feeling better. School work comes first. I'm sure you'll have more time to trade when the school session is over.