Thursday, September 07, 2006

NASDAQ Technical Picture - Test of 2150 Support

As per last night's post we had continued weakness on the open and managed to find support at 2150 at the 10:00 reversal time. The bulls took over the session until the the Philadelphia federal reserve President's hawkish stance on interest rates became public in midafternoon. This set off another round of selling into the close. By the end of the session, the NASDAQ had shed 12.5 pts. and carved out a NR stick with a long upper shadow. Normally, I would expect a reversal at this support level, leading into a lower high which would confirm that we are in the midst of a pullback. However, tomorrow is Friday with no economic data in front of the open so we have to wait until the pre-market to get a better indication.

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