It was an ugly day today as the NASDAQ erased all of yesterday’s gains and then some. Novellus’ earnings guidance and a slightly weaker than expected consumer confidence report were the reason for all the selling. The SOX is now back below its middle Bollinger Band and is sitting just 2 points above its 50-day moving average at 515. I think it could fall back to 500 without being technically broken. Should be some (more) interesting action in the semis over the next few days.
I’ve been wanting the NASDAQ to pull back to its middle Bollinger Band for a couple of weeks now. A wise man predicted that it may just go sideways until that line rises far enough to meet it. Well that’s exactly what’s happened to the QQQ today.
It seems likely that the same may happen on the NASDAQ in a day or two. I’d still rather have had the NASDAQ drop to the line, but in this market I’ll take what I can get.
The Fed’s interest rate decision is due tomorrow at 2:15 so I’ll be waiting until 2:45 to initiate any swing trades.
