The One-Hour Bounce
Wednesday’s action in the Nasdaq does suggest a short-term
bottom, but short-term may only mean one hour. At this point, I still do not
feel good about taking home many positions overnight, though I did take home one
bellwether, based on a bullish tail. I hear the pundits each day calling tops and
bottoms. My thoughts: We’ll know a market bottom only after the fact.
Today’s Tech Watchlist:
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PowerRating),
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Newport
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showed a series of four higher lows. The near-term picture shows a small
ascending-triangle formation under the all-time high. If the market can gather
some strength, it may be able to retest the highs that it set not long ago. The
50-day MA has served as backing support since mid-May. Secondly, watch for a
high-level saucer pattern to form on a test of the former highs.
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Applied Micro Circuits
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PowerRating) bounced off near-term support during
Wednesday’s mid-day recovery. The last four days have also traced out a 1-2-3-4
reversal pattern. If the market is strong, look for a move above Wednesday’s
intraday high. If we see more weakness, you’ll want to watch for a breakdown
below the support level that was just tested. Volume-wise, we have seen
consistency for the past few weeks, with only a few anomalies.
Until later,Â