Monday, September 25, 2006

NASDAQ Technical Picture - Tech Outperforms Again

The NASDAQ gapped up on the open and fading was the only way to go. I saw lots of black candles on my opening range which almost always favors the short side. We retested Friday's lows and then pivoted into a huge rally. As I mentioned on the weekend in this post, the SOX was easing into its trendline, so it shouldn't have been such a surprise to me that we rallied. The NASDAQ clearly outperformed the other markets again. Check out the NDX 100 heatmap - a few of this blog's favorites are in the top 10 (AKAM, AAPL, and NVDA). Will we get follow through tomorrow? I still favor a pullback but we closed near the highs and volume was up.

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