Short Side
S&Ps are at new lows at 1182.2, just above the support zone of 1181 to 1178. Keep in mind that this support area is where the rally started on Friday. Let’s see what happens later today.
Earlier we had seen some notable brokerage selling and the locals had a short sentiment. Now locals are on both sides of the trade.
Nasdaq continues to weaken now, trading below the psychological 1600 level. With the Nasdaq at 1595, we have important support below this at 1588 to 1570.
The Semiconductor Index
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SOX |
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PowerRating) is off sharply today, adding to the bearish tone to the Nasdaq. Keep an eye on the SOX as a proxy for what might develop in the Nasdaq.