Thursday, February 05, 2009

Technical Picture - Gap Fade Outside Day

The markets gapped lower on the open in the wake of lower than expected initial claims, but the bad news was quickly faded, followed by a minor pause and another thrust. The afternoon was mostly sideways consolidation ahead of tomorrow's all important jobs data.

The NASDAQ has the best looking chart with a bullish engulfing stick today on higher volume. We closed above the 50 DMA. We have a higher low and moving towards a retest of the most recent high. However, the jobs data will set the tone for tomorrow's trade.

Financials got a boost on mark-to-market rules chatter. Sounds like a desperate option to me.

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