Wednesday, July 12, 2006

NASDAQ Technical Picture

According to the McClellan Oscillator, we went from deeply oversold to overbought and now we are neutral. Funny, it doesn't feel that way.

The NASDAQ broke support of its mini trendline and 2100 on a closing basis. Yesterday's leader, the SOX was a fade today for sure. Volume is still not compelling, but based on the technicals, it looks like the NAZ is heading lower. The next target will be the June lows.

CREE warned in AH that revenues will come in at the low end of guidance due to production challenges. The stock cratered to $17.00, a loss of 5.5 points from today's close. Other than KLAC, good news appears to be hard to come by for the battered semi sector.

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