This weekly chart shows the New Yearly Lows for the NASDAQ. As you can see, we have reached levels that mark strong oversold conditions and could set the stage for a lasting rally. It has gotten worse before, so use discipline in your stops. QQQQ is being held back by GOOG and YHOO, but otherwise, NQ is holding on to key support at 1477. The line in the sand today will be NQ 1465.
I like the fact that the NASDAQ bounced hard off 2003 highs of 2015 yesterday and is now up more than 50 points from that low. It is impressive, especially given the bad news from YHOO. This means the market is now telling us that all the bad news is pretty much priced in. Oil keeps dropping and that is an added bonus.
This entry was posted
on Wednesday, July 19, 2006 at 7:41 AM.
