Yesterday, we noted for both the $NDX and $SOX, resistance overhead was in the form of the 20-day EMA, the 50-day MA and the "downtrend" line. Intraday, the NASDAQ futures flirted above Monday's high for a big before breaking down, and this set up a big reversal day on the daily chart. This sort of price action tells us that there are willing sellers out there, and it is going to take a big push from some catalyst to get it moving on the upside.
If nothing comes to save the day, the path of least resistance is probably downward at this point. We note that volume was up today, just like the SPY and DIA.
04.03.02 18:05 #