Wednesday, September 27, 2006

NASDAQ Technical Picture - The Hype is Overdone

After all the hype on CNBC, this session was doomed to fail. (I agree with Trader Mike - the CNBC hype is misguided). And thus, we had a very choppy morning followed by profit taking in the afternoon. The tech sectors were mixed with the SOX down and biotechs up. The daily chart of SOX appears to be carving out a lower high and the biotechs ($NBI) are now poised to breakout. We might see a little sector rotation going into October. Let's face it, we've had a nice run off of the July lows and now its time to pullback and digest.

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