Tuesday, September 23, 2008

NASDAQ Technical Picture - Gap Fill

Yesterday, I said that I'd like to see the bullish gap from Friday filled sooner than later. Today we saw a low volume gap fill, and then some, amid investor unease. We closed on the lows of the session because after filling the gap, rather than reverse, we gained momentum on the downside. Broker/banks/ insurance paced the way down despite the ban on shorting. Airlines were much weaker on a spike in oil. On the plus side Gold/Oil.

A correction of the dramatic gains from Thurs-Fri is not overly surprising but how the indices perform from here, will give an important read on investor confidence/underlying health. Moody's downgraded WaMu's Covered Bond Program to Baa1 from A3. WaMu under review for potential further downgrade.

No economic data tomorrow.

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