The end of another trading week and we could not sustain our rally...It was expected considering that the major indices were near or in there resistance levels.
The Nasdaq will now have resistance at 1700 and support at 1640.Some good economic news is a must if we are to get over the 1700 and higher.The downside to 1650 can happen if we get bad economic news as today?s reported lower than expected GDP,and as I have stated before that terrorist related attacks here and abroad would carry it lower to 1600 and this would be our support area. Keep in mind that if this market sells to a level of 1550,and the Dow 9400 which would indicate level of capitulation is a direct result of a terrorist attack being the only real reason for such a negative market response.
With our long three day weekend ahead of us and a short trading session and the end of the month, (MM balance their books)we may see a few ticks up,but this will only happen on a very quiet weekend.
One area that gets concern is the semiconductor sector and almost monthly where the analysts makes a prediction and now an about face,with just today Goldman Sachs made a call this morning as a negative and they were quite optimistic a month ago.With the flack these people feed us it's no wonder why they can't get it straight...Semiconductor is the first sector out of an economic slump.I guess a wait and see attitude is forming on the street.
Apply your trading abilities with discipline and know when to hold them and when to fold them...As always research with sound DD and invest intelligently.
See you all on the trading floor next week.
Have a good day and a safe Memorial weekend..
ET
The Nasdaq will now have resistance at 1700 and support at 1640.Some good economic news is a must if we are to get over the 1700 and higher.The downside to 1650 can happen if we get bad economic news as today?s reported lower than expected GDP,and as I have stated before that terrorist related attacks here and abroad would carry it lower to 1600 and this would be our support area. Keep in mind that if this market sells to a level of 1550,and the Dow 9400 which would indicate level of capitulation is a direct result of a terrorist attack being the only real reason for such a negative market response.
With our long three day weekend ahead of us and a short trading session and the end of the month, (MM balance their books)we may see a few ticks up,but this will only happen on a very quiet weekend.
One area that gets concern is the semiconductor sector and almost monthly where the analysts makes a prediction and now an about face,with just today Goldman Sachs made a call this morning as a negative and they were quite optimistic a month ago.With the flack these people feed us it's no wonder why they can't get it straight...Semiconductor is the first sector out of an economic slump.I guess a wait and see attitude is forming on the street.
Apply your trading abilities with discipline and know when to hold them and when to fold them...As always research with sound DD and invest intelligently.
See you all on the trading floor next week.
Have a good day and a safe Memorial weekend..
ET
