More Selling today

Posted by downtowntrader | 5/17/2006 10:01:00 PM | 0 comments »

The selling continued today and every move up was rebuffed. The Nasdaq looked like it would bounce after a strong move down mid morning, but eventually it ended near the lows for the day. I have been expecting a bounce but it seems that everywhere I read people are expecting the same. While it seems likely that the near term bottom may be in, the market has a way of fooling the majority.

Here is an updated Nasdaq chart. I am showing the weekly chart to show the longer term lower trendline.

Here is the weekly SP500 chart. The $tick dropped to under -1000 today at one point and you could sense extreme fear with the down move. It looks like the SP500 may be headed to the lower trendline over the next couple of months.

Here is a chart of Oil. Looks like it may get a bounce here as it is finding converging support.

Here is an updated chart of DRIV. If Nasdaq bounces tomorrow then DRIV should break to a new 52 week high.

SLW has corrected pretty sharply along with silver. Here is a weekly chart showing a trendline in place since the IPO. Each visit to this trendline has been rewarded handsomely.

CTXS has been observing support and had an inside day signaling further consolidation.

Good Luck trading tomorrow and observe your stops.