I am looking at this comp break and find this chart helpful-- we are sitting at 50 days EMA and if we break this today....
clearstation.com
we can go to as low as 2350 the 50 days MA sits at that level,
quote.yahoo.com^IXIC&d=3mm
2350 is the first support...if 50 days EMA around 2466 is taken out, a break of 2520 and 2110 again notified us a bit ealrier of this steep sell.
On DOT I would think that 600 is the first support, next would be 580 and than 540, the momentum players have to hold like AOL 112, ATHM 145 CMGI 220 QCOM 195 EGRP 100 INKT 95 AMZN 137... if I see break of these supports DOT will have a sharp correction, if these supports remain intact we can see a bounce of 580 area rather a little higher at 585-90, this will be third test of below 500 but making a higher low, however I see lack of momentum in the stocks and this what internets need, in no way you can deal with this sector through any other way of vlauation.. A close above 625 or a break of 615 will give you some indication of momentum but I would not advice to go for bargain hunting until 628 is taken out solidly or to be more precise a break of 2504 on Comp...
Looking at this chart of IIX another internet index I follow I see--
clearstation.com
that we have two double peaks and we are going to test this 302 area if we take this out we go much lower to test 250-265 band.. I will like until next FOMC meeting to be cautious, I will like pits to go thru this 1318 area and test 1292 for a valididty of the market level, I think market after bond test of 5.7 yield range needs that test of support, last time we had these yields market was at 990... the perception will only change if stram of economic numbers give confirmation of non-inflationary growth that I expect but in the interim just trade where opportunity presents itself...I will rely on pit info and trade accordingly.. |
