Wednesday, September 20, 2006

NASDAQ Technical Picture - Bulls Getting Cocky

The market gapped up about 15 points on ORCL's stellar earnings and guidance report. From there it managed to add another 15 points in a somewhat choppy session given the Fed policy statement in mid-afternoon. The software sector was the easy winner on the session and the SOX was a bit of a disappointment. However, all major tech sectors participated in today's rally. The NDX leaders were all software names - ORCL, BEAS, CTXS and the loser was JOYG which breached support into the close setting up a nice short trade going into tomorrow.

The weekly timeframe (below) shows that we are trading into a former conjestion area. I still feel we need to consolidate or pullback in order to properly digest this recent swift ascent.

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