Nasdaq Getting Sunned
Sometimes the market behaves almost exactly the way you expect it to, but not
in a way that you like.
My mixed feelings are called forth in today’s action in the Nasdaq
(
$COMPX |
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PowerRating)
and in Sun Microsystems
(
SUNW |
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PowerRating) because the market did what the charts
suggested they would, but unfortunately, it didn’t exactly brighten Wall Street’s
day.
If you will refer to my “Chart of the Day” from 12/11/00, Nasdaq
Running The Gauntlet, and the one from 11/12/00, Multiple
Patterns Hitting Sun Microsystems, you’ll see the Nasdaq was positioned to
pull back. SUNW had bearish volume patterns which suggested that it might break
support. The bounce I thought might happen before the breakdown–never
materialized.
Going forward into the rest of the week, traders may need to
face up to the possibility that we may have another run to the downside. But be careful–don’t get too opinionated!
Until Thursday,