The bears were at it again today, unrelenting. The conditions are so oversold, they will need very bad news indeed tomorrow and Wednesday with both PPI and CPI on deck. Any in line number or better will set up a rally.
All levels of support were broken, including 200 dma for NYSE and the DOW. The COMP (chart) just about closed its November gap in the last minutes of trading and bulls are hoping that will stop the bleeding. QQQQ October low is 37.33, today's low was 37.39. NDX/QQQQ weekly RSI reading is the lowest since October 2002. One could test the long side on an overnight hit of NQ weekly S1 at 1530 or so, but any such attempt must be accompanied with a very tight stop. Don't forget this is option expiration week and quadruple witching at that, so there will be some wild swings.
This entry was posted
on Monday, June 12, 2006 at 5:23 PM.
