Bobby, there's something of a divergence between the Nasdaq Composite and the NDX, probably confirming the point about poor leadership, but perhaps also pointing to a changing of the guard, a new set of generals - not now, as it does seem far too soon for a charge up the hill, but when the techs have finally finished licking their wounds, gotten drunk and started a few fights, staggered home with teeth missing and torn clothes, collapsed on the bathroom tile and awakened in their own... well you get the idea...
Anyway:
stockcharts.com[w,a]dacanymy[dc][pa.50][vc60]
vs.
stockcharts.com[w,a]dacanimy[dc][pa.50][vc60]
Sure, a big part of it is probably just CSCO, but the NDX has already violated support from the Easing Day (1/03) high, and has also plunged through the 50-day MA, whilst the COMPQ did so only today.
Poisonally, I don't presume that either the NDX or the COMPQ, or, more likely, both together NEED to re-test the lowest lows, much less molest and violate and destroy them along with every last die-hard hopeful tech long, but, as you know, I don't exclude any possibility between 500 and 20,000. Guess is we probably gotta get down before we can get on up - HANNIBAL's opening looms large - but let's see how the Comp handles a threat to the low 2600s and the recently broken downtrendline. As of today, it has merely drawn a nice uptrend connecting the 1/03 low, the 1/08 low, and today's marvelous close, pulling back on low volume. A nice little gap reversal say on Monday might turn sentiment right around in a second. As usual, hardly anyone would remember whatever nonsense they fervently believed this afternoon. |
