INDEX UPDATE
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I did a TA on the following stocks which were all very similar:
IBM, JNJ, CCI, AMAT, INTC, APM, CSCO, WDC, XON,DELL, CPQ, TXN, GE.
Most of them were in the overbought range per the SHORT-TERM TECHNICALS. Only CCI was not in the overbought range but close to it.
They all turned to the downside and the bias is to the downside.
Whenever the technicals move simultaneously for various indexes, it is a sign that trading will be volitile.
At this time I am not sure that tomorrow will be a completely down day. When simultaneous trading takes place funny things happen.
I am carefully watching the divergence between the DOW and the SOX. Even though the sox was down, the DOW had a much stronger drop.
I think that the Issues to watch are the following:
1) strength in the SOX compared to the DOW
2) interest rates - resistance line at 6.68.
3) support lines in the SPX.
I am having much difficulty during the day to log on to SI it is so slow, so I may be missing alot of conversations.
Technically, the bias is to the downside, but I would not be surprised if we close substantially off the lows for the day or if we even closed flat to slightly up. I realise its a Friday and other factors - but those are not taken into consideration by this analysis. |
