Lots Of Wallflowers
The Qs have rallied
— and I use that term loosely these days — on the heels of a
better-than-expected GDP and Chicago PMI this morning, but have all but ground
to a halt since the initial surge. As has been the case in recent days, buyers
seem to be largely on the sidelines unless spurred to action by news, and
downtrends have felt more indicative of lack of buyers, rather than panic
selling.
Wednesday, October
31, 2001Â 11:50 AM EDT
(1)
Approx. Equivalent QQQ Price
Turning to the
longer-term perspective, the weekly NDX chart is worth watching now that we’ve
retraced off what was strong resistance just north of 1400. Specifically, how
does the current — and any further price retracement — size up with
corresponding stochastics? As of yesterday’s close, the NDX has retraced about
one-third of its 9/27 – 10/26 climb, while the weekly stochastics have merely
leveled off around the 50 band. A move and hold above current 60-minute or daily
resistance might serve as a decent Q entry trigger and stop premise for those
considering positioning for a longer term climb beyond what so far has merely
been a pullback in a long-established weekly bear trend.
Good trading!