mike, look at today's market action. IBM INTC beat the earnings estimate but the street doesn't like revenues so they take it back behind the shed for blood.
QCOM has great report and they can't hold significant gains.
Now I Look at the NDX 100. BOTTOM 10 % Losers are heavyhitters with 7% loss or better:
INTC, EBAY, CMGI, CHIR, TLAB, AMAT, KLAC, ATHM, RNWK, IMNX
Of the top 10 % gainers only 1 (3 COM) is recognizable- the others are lesser named tweaners that the investing public knows little about:
SANM, TECD, ROST, CMVT, VSTR, LNCR, COMS, LVLT, CBRL, APCC.
Incidentally, QCOM was 13th best % gainer.
Bottom line: - more backfilling is needed and big NDX leaders (CSCO, INTC, MSFT, ORCL, ERICY, SUNW, DELL, WCOM QCOM),need to reassert themselves and this may take several days/weeks. If NDX 3,580 breaks, a drop to NDX 3,360 intraday test is on the cards and this could satisify minimum requirements for this NDX pullback. If things do in fact turn ugly, your band NDX 2,800 - 3,000 is not out of question. If NDX 3,580 holds tomorrow, we may rally it beyond NDX 3,910 and pierce NDX 4,150 heights next week before turning back down.
I have drawn the line in the sand NDX 3,580 and like a magnet the NDX closes at NDX 3,583 today. Tomorrow close will set the tone for next week.
My bet is down first- then up. But if tomorrow is strong I may re-enter NDX.
Best Regards, J.T. |
