Friday, August 11, 2006

NASDAQ Technical Picture - Weak Bias

The NASDAQ McClellan oscillator is fairly neutral but looks poised for more selling.

The NASDAQ carved out an inside day on lower than average volume, typical of a summer Friday. Although we held the lower pivot point on a closing basis once again, the market feels very bearish. A quick look at the weekly chart puts the recent trading range into perspective and points to the possibility of a break lower in the very near term. The options backdating issue is turning into an epidemic and could push the NASDAQ down in the gutter if things don't get resolved quickly enough.

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