Well the one (big) thing that could have spoiled that nice technical set-up I talked about yesterday came to pass. As soon as the text of Greenspan’s speech hit the wires the market went into a tailspin. The result is that the NASDAQ obliterated its morning star by closing below the low of that pattern. It now sits right on the top of its old downtrend channel. It’s now make or break time for the NASDAQ — it could easily slip back into that channel. If it weren’t for the interest rate issues (damn those fundamentals) I wouldn’t be too concerned because we’re so oversold. But in this case the fundies can certainly trump the technicals. It’ll be really interesting to see how the market reacts to Greenspan’s words tomorrow.
I closed all my shorts and went long at the close. I think there’s some unfounded fear about inflation and interest rates. They were bound to go up, since we’re at 40-yr lows and having a booming recovery.
No big deal.
To the moon. The bell has been rung.