Tuesday, August 15, 2006

NASDAQ Technical Picture - A Milestone for the Bulls

As noted in last night's post, the markets are fixated on inflation. Today's core PPI data came in lower than consensus and the markets interpreted this as a signal that rate hikes are over for the balance of the year. The bulls were out in full force in pre-market and the NAZ gapped up over 20 pts. on the open. By the end of the session it had gained 46 points, closing on its highs and carving out a wide range bar, just 4 pts. shy of the August high. In so doing, it left the 50 MA, 2100 pivot and a broken trendline in its dust. Eureka for the bulls!

The SOX, GHA, and GIN all managed to recapture their 50 MAs. The NDX 100 heatmap is virtually all green with the big winners - AMLN (10%), NVDA (9.6%), JNPR? (8.4%) , and AKAM (7.3%).

Hopefully tomorrow's CPI data will confirm the PPI. Not to get overly optimistic, if we can hold 2100 on a closing basis, we will maintain the 50 MA and still be in relatively good shape. Resistance going into tomorrow is the August high 2119.

No comments: