Big bounce on Friday, sure feels like the fabled PPT (Plunge Protection Team) is hard at work. Everyone has decided the bottom is in and funds are scared they will miss the boat. But there was also some rotation going on and it seems it was out of techs. The SOX was lagging, although ended up above the 200 week moving average at 422. Watch that level very carefully next week. We could very well have a scenario where the DOW rallies and not QQQQ/NDX, just like in August of 2004. I am keeping the powder dry a little longer before buying the Q's. I have not changed my outlook for a bullish second week of November for techs, but the coming days could be a minefield. NQ (NDX futures) did a double top and critical failure at 1600 and that is not healthy.
This entry was posted
on Sunday, October 30, 2005 at 10:17 AM.
