Wednesday, July 05, 2006

NASDAQ Technical Picture

The NASDAQ shed 37 points amid a broad based morning decline on relatively low volume. If it can't snap back in the early going tomorrow, the NAZ will likely head towards another retest of 2100 in the coming days. That level of support is getting tired, so I'm not optimistic going into a fourth retest. Some major tech sectors are already giving bearish signals that lower prices are inevitable, most notably the SOX which paced the way down today. A failure to hold support of the 20 day EMA on a closing basis tomorrow will be very bearish. Today's weak volume is somewhat puzzling but is likely related to the holiday effect.

4 comments:

Michael said...

You seem to be doing quite well these days. Why was it that you went back to a *real* job again???

monkeydust said...

Well, I'm hoping for a rebound in the morning. I've been pretty impressed with Merlin's predictions lately ( http://www.crystalball-forum.com/merlin/ ) if you ever have checked that out before.

ATYT was my standout today and I added shares of THE at 38.30 this morning as well. I think THE is one you should definitely keep on your radar.

Jamie said...

Great entry on THE. I'm going to watch to see how it opens tomorrow.

I checked out the crystalball site. There are a lot of different offerings there. Are you a subscriber? If so, which service?

Thanks.

monkeydust said...

No, not a subscriber. Just have been looking at it's predictions over the last couple of weeks and have been surprised by the general trend accuracy of it.

THE tends to jump around a bit. Hopefully its dont jumping to the downside for a while. But, it typically will dip around 10:30 most mornings lately.