Low Blow
The S&P futures are looking to test the intraday support that they set,
while on the tech side, the Nasdaq futures are heading back towards their lows,
taking the whole market with it.Â
For the ultra short-term, based on the indices and the names I
follow, I see more downside potential. Please note that when I say short-term, I
mean in the next hour or so. Now at the same time, the Nadsaq futures have shown
10 down bars on my two-minute chart, which could lead to a bounce.
Now as I write this, I see the Nasdaq futures are taking out
the low of the day. Resistance held on the Nasdaq futures at 3400.
Also noteworthy is that the semiconductor index, the SOX, took
out their intraday low.
Â
Today’s Watchlist:Â
(
CLTR |
Quote |
Chart |
News |
PowerRating),
(
NENG |
Quote |
Chart |
News |
PowerRating)
The biotechs have been quite strong of late, as I noted on Friday. In that
group is Coulter Pharmaceuticals
(
CLTR |
Quote |
Chart |
News |
PowerRating), which hit its new 52-week high on
Thursday. On Friday it showed an inside day. At this point, as with any
breakout, we will monitor for a continuation to another new high.
Network Engines
(
NENG |
Quote |
Chart |
News |
PowerRating), on the short-side, although
bouncing today, is still poised to take out support. It tested the 24 area. On
Monday its bouncing a tiny bit, but that may be nothing more than a bear rally.
Of course, based on my methods, we will set our alerts for a break of the
intraday low from Friday.Â
If you are a pullback trader, you may want to watch for an
intraday reversal pattern to offer an entry. If you use this method, watch for a
bounce near 24, which is still support, especially if you enter above that
level.
Until later,