Tuesday, August 01, 2006

NASDAQ Technical Picture

This week's correction following last week's technical bounce is not atypical. The light volume associated with this week's pullback is encouraging. However, now the bulls want to hold the 2052 pivot point rather than slip down to the next minor support level (2030) in order to keep the technical bounce alive.

A quick review of the major tech sectors is not all that inspiring: the SOX and Hardware have formed bearish evening star like patterns and the internet and networking sectors almost always look weak. The best looking sectors are biotechs and drugs.


Anonymous said...

Natural Gas plays are still looking good like NGAS(bought at 7.55) and CHK.

TJ said...

Energy and Gold are bullish. Saw a nice setup for AUY on the Downtowntrader blog last night. Great trade on NGAS. Resistance at $9.40