After today’s thrashing the NASDAQ is basically flat for the year. So far this year it’s been up 150 points and now is 146 points off of the high. It seems like my concerns about the NASDAQ were correct, it just took a couple of weeks to play out. The NASDAQ is back below its 50-day moving average, is making lower highs and lower lows and its OBV is pretty weak. So there’s not much to be bullish about in tech land right now. I do expect some kind of bounce around this level though. We should have support from the 2000 level just because it’s a round number as well as the fact that it’s near the 2003 highs. But after that bounce I’ll definitely be looking for shorts.
The S&P 500 still looks pretty good on the daily chart. But the weekly charts of all of the indices are begging for a correction.
