Thursday, August 03, 2006

NASDAQ Technical Picture

After gapping lower on disappointing earnings, the market quickly reversed. From the low to the high of the day, the NAZ picked up 40 points, closing up 13.5 points on the day and kissing 2100 in late day trade. All major tech sectors ended the day in the green with internets taking the lead (GOOG up 2%). Today's NDX winners were NVDA, CHRW, and EBAY. EBAY?

This market clearly wants to breakout of its downtrend and tomorrow's jobs data will set the tone for the day's trade at 8:30 a.m. EST.

Good Trading!

4 comments:

monkeydust said...

I still think all of this importance being placed on a pause in the fed's rate hike policy is ridiculous. We still have rising inflation and the economy is slowing. It boggles my mind that we aren't all focused on that instead of whether the fed raises interest rates 1/4 point.

I mean come on. People are hoping for a lousy jobs number?

I'm thinking the fed will pause, markets will rally, and then we will see new market lows in October. (could be absolutely wrong on this of course)

Jamie said...

Agreed, but in trading you have to focus on what the masses are looking at. Today jobs, next week FED and so it goes.

I still think this is just a technical bounce.

monkeydust said...

Ok, today is acting like I expected (acting like last Friday should have IMO). Initial reaction to slowing growth starts a rally and then reality of slowing growth leads to market selloff.

Jamie said...

I also think part of yesterday's rally was in anticipation of lower jobs data. A buy the rumour, sell the news type scenario.