James,
"Hi J.T.; Looks like mo mo buyers came in after they snapped her
up ( easy to do on low volume ). We could get a rally here for
a few days but I can't picture the bottom yet as the volume
stayed to low until after the snap."
Mo mo buyers in droves. You called the short term bottom on NDX very smartly. I have guests from VA. and the bulls run rampant in the China shop. Market needs to work off excesses from three weeks of selling and the most oversold conditions in markets since OCT '98 lows. I mentioned DOW 10,410 test was not going to materialize without selling participation in these groups (M554):
"The smokestacks/cyclicals (AA, CAT, IP) and oils (XON, CHV), are going to have to turn negative to get this capitulation test DOW 10,410 I have been talking about.
"COMBINATIONS OF LEVELS BELOW NDX 2,185, DOW 10,410, UTIL 313, RUT 417, SPX 1,287. THESE ARE THE LEVELS FOR CAPITULATION."
Also, UTIL has turned down and fast approaching my primary support 316.60 I mentioned this morning (M544)after being over 319 intraday high.:"
As you can see, unless UTIL reverses back up today, we have broken back of 316.60 support on our way to 313 test:
dbc.com
The updraft in market also caught fire from CSCO earnings and beige book report. I expect this bounce to end within next day or two before we continue turning back down.
Best, J.T.
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