Indices give back gains

Posted by downtowntrader | 7/12/2006 10:45:00 PM | 4 comments »

The major indices gave back all of yesterdays gains and then some. While volume was lower, technicals were pretty negative. The Nasdaq looks like it will retest June's lows with most techs looking extremely weak right now. Here are a few charts to check out.

POWI just fell out of a channel it was trading in, and may have a quick run down here.
VOL may find support at the 20sma.
ATHR looks like it is forming a bear pennant up to it's 200sma and previous trendline.
BWNG just fell under a large support area.
CTXS is hovering near major support. They may get a bounce back to the blue descending trendline, but they could just as easily head down here.
XRTX hasn't broken the support line and 200sma yet, but it is looking like it will. ADX is curling up here.

If we manage to get a bounce tomorrow, take a look at some of my previous charts from this week such as eye, celg, cldn, tzoo, etc. Otherwise, we may be in for continued weakness in tech stocks.

Good Luck,

DT

4 comments

  1. Anonymous // 11:23 PM  

    I agree that we may revisit june lows but I think we will bounce one more time before having a bigger selloff early fall. Long QLD as of today hoping for a bounce back to $68 before the next leg down.

  2. downtowntrader // 11:34 PM  

    I would tend to agree, as I was thinking we may get a double bottom and a little rally higher. However, I am not ruling anything out especially after the continued weakness.

    DT

  3. Anonymous // 8:07 PM  

    Hey DT,

    Good call on CTXS. It was my best trade of the day.

    Thanks!
    Jamie

  4. downtowntrader // 8:42 PM  

    Thanks Jamie. I was in meetings all day so I didn't take a single trade other then getting stopped out on some swings. I did see it getting the bounce off the 200 though. Very nice trade.


    DT