Trade Carefully

Posted by downtowntrader | 11/08/2005 11:20:00 PM | 0 comments »

I noticed a lot of charts that look tired today. While I'm not really bearish yet, it looks like the market is digesting it's recent gains. The smallcap index has fared worse then it's big brothers which could be signaling a sector rotation. I am looking at Tech being the leaders if there is to be a sustained rally to close the year. With that in mind, here is a chart of one of my favorite tech's lately, SNDK.

The daily chart looks like it may come down to the trendline and 38.2% fib retrace. However, it did cross below the 10 day ema and reversed to finish above it.

The intraday chart looks a little more promising. Watch for a break of the pennant formation. If it breaks higher, I think it is a playable move. If it breaks down, I will wait and watch for a bounce on support from the dail chart above.

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