Wednesday, September 06, 2006

NASDAQ Technical Picture - Profit Taking was Overdue

Yesterday's low volume close above resistance was somewhat suspicious. However, it wasn't out of the ordinary given August's low volume rally. Today's gap down and non-stop selling was a clear sign of profit taking. We closed on the session lows and the AH trade showed more weakness in the semiconductor sector on ATYT's lowered guidance. Expect more weakness on the open tomorrow. Next area of NASDAQ support is 2150.

Tomorrow's economic reports start with initial claims at 8:30, followed by wholesale inventories at 10:00 and crude at 10:30. This is the type of environment where any minor economic report can set things off so its best to be aware.

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