Tomorrow is when we will find out if there is one more wash out low. QQQQ has a gap from November to close at 39.35, should 39.75 support break (see Saturday post). It would line up with NQ 1611/1613, weekly S1 and NDX gap close as well. This would pretty much end the selling this week if it were to occur. There is strong put support at 39, 40 and to a lesser extent 41. Keep in mind that once that gap is closed (again if that is the plan), the bounce back up to 40 and above could be pretty quick. I do not subscribe to the total meltdown scenario, not if oil keeps dropping. We are now 4% below the 20 dma and that has invariably acted as support in extreme cases.
This entry was posted
on Tuesday, May 16, 2006 at 4:40 PM.
