That, was not a good way to end the day! The markets started out very well, with SP500 hitting 1530 and the Nasdaq hitting 2600! But, the markets turned lower and closed in the red! SOX, in particular, is raising some warning flags. BTK closed flat. But, the commodities came back today. Both GLD and OIH closed in the green!
SOX
SOX has caught its lower BB! Not a good sign. We’ll need to watch the semiconductors closely tomorrow. Let’s see if it can bounce off the support at 485.
Nasdaq
Nasdaq was looking very good this morning, catching its daily upper BB and touching 2600. But, its MACD had problems turning positive. The overall market condition didn’t help either. It was a nice little vent today, as perhaps hitting 2600 was a good mental place to take some profits. Let’s see if the techs can resume upwards tomorrow.
SPX
SPX hit 1530+ today, and was holding on pretty well until the last hour. Its MACD turned negative again. Certainly, some indecision and nervousness are showing in the markets. Perhaps it is time to start accumulating cash.
OIH
OIH managed to close in the green, as commodities came back after yesterday’s venting. I’m still seeing room for the drillers to go up. Let’s see how the overall market condition is.
Well, I was thinking in this week’s forcast that, “We should see buying continue early in the new week, and perhaps, some venting at the end of the week.” We did see the “buying” continue early in the week, but, did this venting come too soon? Did 1530 SPX and 2600 Nasdaq give people a mental cue to take some profits? Somehow, it doesn’t feel, to me, that the buying for this cycle is quite done. But, it’s perhaps prudent to start accumulating cash. Let’s be careful tomorrow.
Good night and HappyTrading! ™
One Comment
I’ve got a bad feeling about the SOX. That was an ugly Citi DRAM report this week. The STM/INTC NOR plan might help their bottom lines as they cut out losing biz but even then I’m not sure what’s going to bring them up.
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