Friday, August 08, 2008

NASDAQ Technical Picture - Tweezer Top

Yesterday I said look for signs of profit taking after the two day thrust. This morning we gapped down on weak retail sales, AIG, higher pre-market oil, and higher initial claims. After a lot of backing and filling, the NASDAQ retested yesterday's highs, followed by an afternoon of profit taking.

The SOX was ripping this morning - nice moves in INTC and SNDK on my WL. But a lot was given back in the afternoon. Also noticed that biotechs all round, not just AMGN, sold off big in the last 30 minutes of trade. In the broader market, financials paced the way lower. LEH has carved out a symmetrical triangle and I expect that it will be a continuation pattern which could BO any day now.

The NASDAQ printed a bearish tweezer top reversal pattern and just closed under the 50 DMA. The tweezer top is a minor candlestick reversal pattern but could foreshadow further weakness.

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