SOX (Semi-Conductor index) was green yesterday during the sell-off and that was your clue to get on board. Remember that I had written about QQQQ having strong put support at 41, well this rally was a given once we got close enough. Today, the SOX upped the ante by closing above a key level, 524.45, 50% of 2006 which is also confluence of 23.6% October rally. Very bullish if we can hold above and a clear sign that rotation is back into techs.
Oil could not get a handle on 75 and the selling was swift, especially when it lost 73.05, 50%. Traders who were waiting for a breakdown definitely pounced on that level being lost. Nearby resistance is 70.80 and if we can't get a close above that soon, 50 dma at 68 is next. But don't count oil bulls out completely, they might try a push to 71.85/72, which I would gladly short.
This entry was posted
on Thursday, May 04, 2006 at 3:55 PM.
