What This Market Is Facing Now
The market was oversold and ready for a bounce going into
today’s trading, and that is exactly what we got.
Unfortunately, the bounce came on lighter volume than
average and than yesterday. The Dow and
S&P 500 remain above their 200-day moving
averages, but the Nasdaq looks like it will have a major obstacle at its
200-day around 1,940 on the index.
^Next^
Cisco
(
CSCO |
Quote |
Chart |
News |
PowerRating) reported earnings after the bell that appears
to be a non-event as I type this column. Company guidance may change that, but
overall we remain in a market that is facing institutional selling pressure.
This market bounce after the severe sell-off of the past
few weeks seems to be an opportunity to get out of long positions that are
sitting at losses or may provide a good shorting opportunity if you are
interested.
Internets
(
HHH |
Quote |
Chart |
News |
PowerRating) still appear to be one of
the strongest tech groups while Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating) seem to be one of the weakest.
In poor markets such as this, it is best to wait for a
little accumulation to appear before wading back in. This is evidenced by
rallies on heavy volume, or above-average.
Until Thursday,
timt@tradingmarkets.com