The market had a definite change of character today. Buyers were actually stepping up as the Dow and S&P tested their 200 DMAs early in the session. It seems like the 200 DMA sellers have been ‘soaked up’. We ended up having a small rally today, during regular market hours. However, the real action came after the close with the reaction to Intel’s and Microsoft’s earnings. Both stocks rallied about 5% in the after-hours session. Based on after-hours trading, the NASDAQ should open about 20 points higher in the morning. This will put it around 1,410, just shy of the ~1,425 level that marked tops on 3/21 and 4/7. I’ll likely be selling my stocks as we approach that level. Though I like how the market is acting, I think it would be prudent to take profits here. I’m expecting that some options expiration games will be getting played Wednesday and Thursday (the market is closed Friday). It wouldn’t surprise me if we ended the week with the NASDAQ very near 1,400 and the Sam&p;P near 900. I’ll be looking for another buying opportunity next week.
