As the NASDAQ closed above last week's high, thereby setting the stage for a test of this spring's downtrend line crossing near 1746 - now only 5 points away. Closes above this spring's downtrend line are needed to confirm a bottom and trend change. The Nasdaq has broken above 2 resistance levels in the last few sessions, but the huge gap at 1653 is a red flag unless we can get continued heavy volume on rally days this week..This is what it's going to take,volume is key for a major and sustained rally. The Dow and blue chips never got very oversold, so the risk remains that in the next few weeks and couple of months, they too will break down. We have been expecting a tradeable bottom to be reached in May or early June for the Nasdaq, but from more oversold action, such as a selling climax or capitulation. The question is whether the sellers got flushed out enough at the 1560 level for this current rally to be the technical summer rally that has been expected, or whether this is just another technical rally that will not pan out and lead to another lower low in the weeks ahead. Market internals should be watched carefully the next few days and the closing strength is also vital to this market's direction.The semiconductor sector appears to be coming alive and is always the first indicator that we maybe be coming out of a stagnant starved economy.
Technically the market appears to have some more upside. The Dow has held above 10,100 again, and could threaten resistance at 10,400 and possibly 10,660 eventually, but the NYSE needs to increase daily volume again to at least 1.4B shares per day. Traders will watch the up/down volume and overall volume closely on the Nasdaq and NYSE to provide a clue as to whether this rally can rally for another few weeks.
Still, things are looking much more bullish than they were late last week,but the next few weeks will lay the ground for what's in view for the summer and going into fall...The other important factor that will play into this market is the ongoing threat of terrorism and the Middle East...If these two fronts explode,than this will ultimately turn very negative,as we have noticed with this morning's open and the negative sentiment from this past weekend bomber in Israel.
With Walmart's recent reporting of a nice gain in retail sales just proves that in spite of the bantering by Democrats,consumer spending is moving right along,thanks to the nice tax cut earlier this year..This recent tax cut is huge of course only to tax and spend Democrats and blaming everything from the recession to the 9/11 as president Bush's fault,is just their feeble lame brain attempt to send shock waves to the already unpoliticaly out of touch, to unseat a very popular president... Of course this is an election year and the Democrats are scrambling for a negative that they can paint Bush with...This past week took the cake with the two Democratic leaders from both houses coming out and almost blaming Bush for not knowing or not doing enough,which sent negatives waves through to the public and like they always do, the Democrats are back peddling showing once again they put their foot up their own A$$ without thinking....Old Hillary, thought she had a real issue only to add one more check to an already partisan and totally blameless and lying past...Absolutely no shame!!!
Notice how they (Democrats) came out and blasted the Republicans for using a 9/11 photo for a political fundraising...Vice-president Gore's statement on this issue certainly didn't take into account his little wrong doings, and the head of the DNC, Terry McAullif, or whatever has no shame with his fund raising on "Will keep the lights on in the Lincoln bedroom"and not to forget the bringing in of foreign monies from the Far East...I just love to see these people get their just deserve...There is no doubt that the 9/11 picture of Bush on Air Force 1 was a little tacky for fundraising,but it was a moment in this president's time of great understanding and resolve, in bringing together the country under difficult circumstances.. Democrats would have certainly used similar photos to their advantage, as has been done by their predecessors....Just another issue with them...
Another liberal, Politically Incorrect Bill Maher has been deemed incorrect for the image of the ABC network and will be dumped. The infuriating Bill who called our country's policies "cowardly" right after 9/11 became the posterboy for do nothing talking liberals without action.. ..What can you expect from most of those in Hollywood,they just ooz with moral clarity,don't they?
All in all,we still have the greatest free nation on earth and with our two parties, can only justify that balance is always a better choice.In tough times, like now, we can be very thankful that we have an action president and not fighting this war front with a consortium lot of liberal talking nonsense.
Have a good day and see you all on the trading floor..
ET
Technically the market appears to have some more upside. The Dow has held above 10,100 again, and could threaten resistance at 10,400 and possibly 10,660 eventually, but the NYSE needs to increase daily volume again to at least 1.4B shares per day. Traders will watch the up/down volume and overall volume closely on the Nasdaq and NYSE to provide a clue as to whether this rally can rally for another few weeks.
Still, things are looking much more bullish than they were late last week,but the next few weeks will lay the ground for what's in view for the summer and going into fall...The other important factor that will play into this market is the ongoing threat of terrorism and the Middle East...If these two fronts explode,than this will ultimately turn very negative,as we have noticed with this morning's open and the negative sentiment from this past weekend bomber in Israel.
With Walmart's recent reporting of a nice gain in retail sales just proves that in spite of the bantering by Democrats,consumer spending is moving right along,thanks to the nice tax cut earlier this year..This recent tax cut is huge of course only to tax and spend Democrats and blaming everything from the recession to the 9/11 as president Bush's fault,is just their feeble lame brain attempt to send shock waves to the already unpoliticaly out of touch, to unseat a very popular president... Of course this is an election year and the Democrats are scrambling for a negative that they can paint Bush with...This past week took the cake with the two Democratic leaders from both houses coming out and almost blaming Bush for not knowing or not doing enough,which sent negatives waves through to the public and like they always do, the Democrats are back peddling showing once again they put their foot up their own A$$ without thinking....Old Hillary, thought she had a real issue only to add one more check to an already partisan and totally blameless and lying past...Absolutely no shame!!!
Notice how they (Democrats) came out and blasted the Republicans for using a 9/11 photo for a political fundraising...Vice-president Gore's statement on this issue certainly didn't take into account his little wrong doings, and the head of the DNC, Terry McAullif, or whatever has no shame with his fund raising on "Will keep the lights on in the Lincoln bedroom"and not to forget the bringing in of foreign monies from the Far East...I just love to see these people get their just deserve...There is no doubt that the 9/11 picture of Bush on Air Force 1 was a little tacky for fundraising,but it was a moment in this president's time of great understanding and resolve, in bringing together the country under difficult circumstances.. Democrats would have certainly used similar photos to their advantage, as has been done by their predecessors....Just another issue with them...
Another liberal, Politically Incorrect Bill Maher has been deemed incorrect for the image of the ABC network and will be dumped. The infuriating Bill who called our country's policies "cowardly" right after 9/11 became the posterboy for do nothing talking liberals without action.. ..What can you expect from most of those in Hollywood,they just ooz with moral clarity,don't they?
All in all,we still have the greatest free nation on earth and with our two parties, can only justify that balance is always a better choice.In tough times, like now, we can be very thankful that we have an action president and not fighting this war front with a consortium lot of liberal talking nonsense.
Have a good day and see you all on the trading floor..
ET
