| If you are a bull, today's trade must be a bitter pill to sallow. Just days after the Wall Street analysts community pounded the table for technology issues, proclaiming the train had already left the station stocks collapse -- how does that work? The truth is that bullish commentary is common whenever the market works toward a key resistance point. All of the major averages did just that over the past several days. We are not suggesting that stocks cannot get through those levels, as mentioned in our last report, we expect bulls to make at least open more valiant effort to save the rally but clearly, most are demoralized. The key to today's trade is resistance at NASDAQ 2,066 and support at 2,055. That is a narrow range we know but if bulls can get a sustained break above short term resistance there is bound to be short covering and another run at real resistance near 2,100. By contrast, a decline through 2,055 is going to be big trouble. |
