Thread ---Good Morning ----from briefing.com---
Okay, so the volume wasn't great and breadth numbers were just fair... But we'll take it... Traders returned from a weekend of sun and fun in a buying mood - and techs were the stocks of choice... Chip, Chip Equipment, Fiber-Optic, PC, Internet Software, Net Portals, Networking, and Wireless stocks were all up big, huge... Gains propelled the Nasdaq to its largest percentage gain ever and to within a whisker of its largest point gain ever... While we've seen a number of one and two day rallies fizzle out over the past couple of months, this rally felt different... Gains weren't confined to one or two groups; stocks actually rallied into bad news (see Qualcomm for example); and leadership stocks saw an increase in volume.
Interestingly, yesterday's big up move prompted in part by growing sentiment that the Fed might leave rates unchanged in its June FOMC meeting - a position this analyst has held for quite some time now... However, before we get overly excited about Tuesday's rally it would be nice to see some follow-up gains on increased volume and improved breadth... Market must also clear data hurdle... As noted on this page yesterday, the upcoming NAPM and employment data (see Economic Calendar) could well spook investors... If so, Tuesday's gains could prove short-lived... But if not, yesterday's rally has laid the groundwork for at least a moderate corrective rally... Resistances for the Nasdaq Composite are at 3500-3520, 3750 area and 4000.
The underlying trend remains bearish, but a couple more days like Tuesday and techs might finally be on the road to recovery.
BEST WISHES
BILL |
