Tuesday, October 03, 2006

NASDAQ Technical Picture - Test of 2225 Support

The NASDAQ gapped down on the open, quickly hit 2225 support, and managed to rally until midday. All tech sectors participated led by internets and networking, but the SOX couldn't even manage a gap fill. The Nasdaq did not carve out a reversal bar so we don't really have any direction for tomorrow, however, based on how we finished, I'm guessing that we either consolidate some more, or creep up a little higher. I expect that we will manage a lower high before the selling resumes. So with that in mind, I will start taking profits if the NASDAQ approaches the 2257-2260 area. Tomorrow's economic indicators are Factory Orders and ISM at 10:00 and crude inventories at 10:30.

Meanwhile, the DOW finally hit its overrated milestone and closed at a new all time closing high.

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