Bounce at the close but not enough to ease concerns that we could see more downside. NYSE year lows outpacing year highs, another red flag. Keep an eye on SOX 511, ES 1272 and COMP 2260, 23.6% fib. I am not comfortable seeing that index below 50 dma at this point and bulls need to step up to the plate soon. However, as usual during the week preceding option expiration, be wary of any move lasting more than a day or two as rangebound trading confuses many. We should not stray too long from QQQQ 41 going into next week. One thing for sure, YM (DOW futures) is on a seperate path and that bullish divergence I pointed out yesterday still made for a good long trade from 10935. Just don't fall in love with it. 11115 should be stiff resistance. Financials helped, no doubt, as the BIX showed some green today.
This entry was posted
on Tuesday, March 07, 2006 at 7:02 PM.
