Sunday, October 29, 2006

NASDAQ Technical Picture - Failed Breakout?

Weekly Timeframe
Daily Timeframe
Friday morning the market gapped down on weak GDP numbers. Shortly after filling that gap, the NASDAQ went into a free fall. According to, the selloff was triggered by a Goldman Sachs growth forecast revision for motherboard shipments which, it was noted were "falling off a cliff". The NASDAQ posted only a minor gain on the week compared to the S&P and INDU. Since the NASDAQ usually leads this may be an early sign that we may be in for a pullback and that would be healthy given the August - October run. The SOX closed on its 50 day MA, giving back 9 points between 1:00 and 3:00 on Friday afternoon.

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