Wednesday, October 11, 2006

NASDAQ Technical Picture - Profit Taking?

The NASDAQ gave back 7 points on higher volume in another choppy session as the market has been range bound for almost a week. Despite the pullback exacerbated by the FOMC and the NYC plane crash, semis were strong led by AMD, RMBS, XLNX and LRCX ahead of earnings. LRCX beat estimates by 10 cents and guided higher. It had an early run up to $51.00 in AH, however, it gave it all back to end the AH session just below $48.00.

At the moment it looks like we may be carving out a rounded top which foreshadows a deeper pullback. However, taking it one day at a time, support levels to watch tomorrow are 2288, followed by 2075. On the economic calendar we have Initial Claims and Trade Balance before the open, followed by crude at 10:30 and the Fed Beige book at 2:00.

GENZ reports before the bell.

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