Early strength propelled the NASDAQ to retest, for the second time in two days, the bearish gap from Monday morning. The gap was breached, but not entirely filled, so we may test it again tomorrow. I suspect that a complete gap fill could be faded, but the divergence between the NASDAQ's strength and the S&P's weakness is a distraction.At the end of the day, we have a bullish engulfing bar on slightly higher volume. We penetrated the 200 day SMA but couldn't close above it. Intraday the channel was breached and is now acting as support.
We could continue to chop around like this until we get a clear break of the daily trend line and H&S top. Friday's jobs data could provide the catalyst we need to make a decisive move, one way or the other. Tomorrow, we have initial claims before the bell.
2 comments:
Nice job on the NASDAQ technical analysis! The elimination of the Briefing.com posts has taken your general market analysis to a new level. :)
Thanks Jim,
Trying to keep it interesting. And hopefully tomorrow, I won't have to laugh at what I wrote the night before. ;)
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