When I look at the charts, I see some reasonably significant resistance about 10 points higher on the NDX at 1590 or so which equates to about 2165 on the NASDAQ. On the SPX, that 1222 area is the first problem which is where we stopped this morning, but if they can breach it, the 1129 area should be the target once more.
With the way the market behaved this morning and since, it appears that this was more of a short covering rally than anything else. I still don't see any strength in the financials and the tech sector was the impetus for the move (read short covering). Thus, I feel we have more to go over today and tomorrow potentially, but if and when we move up to the above areas I'll be looking to turn around again.
On another front, the metals are a big disappointment here. They are getting very close to breaching some areas that would concern me. I've not yet bailed on anything but they are under the microscope at this point. If they were to perk up and show some strength we could add that last round of buys. For now I'm holding off and observing.
With the way the market behaved this morning and since, it appears that this was more of a short covering rally than anything else. I still don't see any strength in the financials and the tech sector was the impetus for the move (read short covering). Thus, I feel we have more to go over today and tomorrow potentially, but if and when we move up to the above areas I'll be looking to turn around again.
On another front, the metals are a big disappointment here. They are getting very close to breaching some areas that would concern me. I've not yet bailed on anything but they are under the microscope at this point. If they were to perk up and show some strength we could add that last round of buys. For now I'm holding off and observing.
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