Tom,
<< On the NAZ, with MSFT breaking down--we could see some pretty sharp declines especially if INTC starts heading down, which I fully expect. >>
I find this extremely hard to believe with much conviction. Looking at MSFT over the last 5 years, when it breaks below it's 200 DMA as it just has, it rarely stays below it for more than a month and, during these periods, it did not diverged more than 5% below the 200DMA.
In addition, INTC rarely stays below it's 200 DMA (it has not violated this for the last 5 years) for more than 4 months...currently, it has been below it's 200 DMA for about 2 months and has ventured about 12% below this 200DMA, abou the maximum it ventures.
In my opinion, this selloff is very warranted on the DOW, but far overextended on the Nasdaq. The DOW has no reason to go up, the Nasdaq should go higher. I don't think we will be led by the same large caps, but the Nasdaq should go higher.
Muizz |
