From Briefing.com: Updated: 27-Mar-03 - General Commentary - So the markets continue to digest that massive rally. On the Nasdaq, our support point of 1367 has now held for three consecutive sessions. Recall on Monday, the Nasdaq bottomed at 1368 intraday before finishing the session towards its session lows at 1369. Then Tuesday, the index touched an intraday low of 1369, before reversing to post a 21-point gain on the session. Wednesday's session looked like genuine consolidation, with the Nasdaq posting a narrow three-point loss.
Without belaboring the matter, recall we were looking towards that 1367 level in the Monday morning review. At the time, the index was facing what initially looked like severe sell pressure early Monday, following the developments in Iraq over the weekend.
The direct quote from that Monday review went as follows: "The Nasdaq has what looks like a somewhat stronger floor in the vicinity of 1361 to 1367. This range approximates a former Fibonacci retracement, and also brackets the index' 20-week exponential moving average. This is the first area that looks like it might stand a 'real' chance of holding on this initial leg lower."
Outside the straight technicals, this continues to look like a market in which many institutions want to be long. However, most would like to see a pullback before initiating positions. Assuming this accurately characterizes the current backdrop, the pullbacks should be shallow, which is what the indices have experienced to this point.
Following a three-year bear market in which every rally was a selling opportunity, traders now face this pullback that looks dangerously like a buying opportunity. It may feel awkward, but the technical backdrop has improved markedly since March 13th. As we've stated in the recent past, professionals should favor a 'buy-the-dips' approach to the current market until more convincing signs of broader technical deterioration become evident. -- Mike Ashbaugh, Briefing.com
Intersil (ISIL) 16.61 +0.26: WR Hambrecht believes Q1 upside is unlikely
4:13PM Broadcom announces management changes at subsidiary ServerWorks (BRCM) 15.40 -0.18: Co. announces that Duane R. Dickhut has been named to lead its ServerWorks subsidiary, replacing Raju Vegesna as the head of that business.
9:59AM Sector Watch: Semiconductor : -- Technical -- The sector has rebounded after early weakness with the index (SOX 324 +0.5%) vacillating just off the highs after probing resistance in the 324.40/324.50 area. Next resistance at yesterday's high (325.51) followed by 327 (50% of retrace of slide off Friday's high) and 329/329.50. Intraday supports are at 323.50 and 322.80/322.60.
9:30AM JP Morgan reiterates Underweight ratings on TQNT, RFMD : JP Morgan says that channel checks along with data gathered by their Asia research team indicate that MOT recently canceled or reduced orders at its component manufacturers, foundry partners, and EMS partners; firm now expects Q1 orders from MOT to some of its component suppliers could decrease over 25% QoQ, vs previous expectations of a 15-20% reduction; firm believes this could be negative for TQNT (+0.6%) and RFMD (unch), and reiterates their Underweight ratings on both.
7:25AM IBM in chip deal with NVDA (NVDA) 14.02: IBM and NVIDIA have formed an alliance, which entitles IBM Microelectronics to manufacture NVDA's next-generation GeForce graphics processor units. The significance of this announcement can be attributed to NVDA attempting to diversify its outsourcing of fabrication processes in an effort to enhance its product to market execution and competitive positioning in the GPU markets.
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