Tuesday, September 19, 2006

NASDAQ Technical Picture - Markets Sell Off on YAHOO's Warning

The NASDAQ had a very strong recovery off of the midday lows which is a good sign for the bulls. The selloff was in reaction to YHOO's earnings warnings, more specifically they said that earnings are expected to come in at the lower end of the guidance range. Within 30 minutes or so, YHOO had lost virtually all of the gains it had made since the mid-July low (a stark reminder of the pain of the aftermath of the internet bubble). However, the NASDAQ which shed more than 30 points intraday, managed a respectable close with a loss of just 13 points.

The markets are volatile and managing risk is very important. Tomorrow's economic data include oil inventories at 10:30 and the FOMC policy statement at 2:15.

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