Monday, September 08, 2008

NASDAQ Technical Picture - Gap Fade

Stocks jumped aggressively higher on the open following the Treasury's FNM and FRE bailout news announcement over the weekend. This brought the move off of Friday lows to almost 5% for the S&P and Dow and immediately lead to a healthy dose of profit taking that continued into midday. The Dow and S&P 500 held near the 50% Fib. retracement of the Fri-Mon rally, forming a trading range before a modest move higher in the final hour. The NASDAQ, on the other hand quickly filled the gap, but found support in the 2240 area before retracing 50% towards the ORH. Top performing sectors were led by banking, housing, retail, an insurance. Sectors on the defensive were led by commodity/energy as the USD set a new 11 month high (coal, mining, steel, gold, solar, oil and gas).

Economic calendar: pending home sales and wholesale inventories at 10:00.

Futures modestly lower as Asian markets fall overnight on growth concerns.

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