The early morning rally was sold pretty hard. This is usually a sign that big money is dumping rallies and protecting profits, especially if the leaders, in this case techs, are the victims. YM needs to get back above 10532 and stay there to get bulls going again. As for techs, NQ dropped the 1555 level like a hot potato and the NASDAQ could not hold on to the key level of 2076 and is in danger of losing the 10 day ema at 2066. For now, sell the rallies. If the TXN after-hours good news is sold tomorrow, expect more downside as that would indicate a temporary top. However, be aware that INTC could deliver a one-two punch to bears on Thursday. That company is firing on all cylinders. Conservative traders might want to step aside for a day or two. Oil inventories due in the morning and will be market moving as well.
This entry was posted
on Tuesday, June 07, 2005 at 4:45 PM.
