The action in tech today was bullish. The COMP managed a solid close back above the 2002 trendline support and SOX held on to its 200 dma. We had two back to back days of NYSE -2000 advance/decline issues (actually -1979 today, but that qualifies) and the only past two recent incidents of that occurring October 2002 and May 2004 marked a reversal point. Barring a catastrophic CPI read tomorrow, a temporary bottom could have been put in. Longer term, I am not confident about this market, but for now we might get a rally that could last into the end of next week. Keep in mind that tomorrow could be a very volatile session but there is a good chance that any bad news in the CPI report is already priced in. For next week, lots of put activity for OPEX (option expiration) and that is supportive.
This entry was posted
on Thursday, October 13, 2005 at 6:26 PM.
