Wednesday, December 27, 2006

NASDAQ Technical Picture - Low Volume Gap Up

As previously discussed, 2400 was a key technical level and the last two sessions have resulted in a technical bounce. Seasonal factors are in play as well (year-end window dressing). Despite all that, today's gap up will provide a slightly higher level of support. Also note that the RSI has recaptured the 50 level. All major tech sectors participated in today's rally with networking and internet pacing the way.

Economic agenda for Thursday: Initial claims 8:30, followed by Consumer confidence and Existing home sales at 10:00 and Crude at 10:30.


Larry Nusbaum said...

Has the trend line been broken?

Jamie said...

Yes indeed on December 18th. And it may take some doing to recapture it.