Strong Day

Posted by downtowntrader | 8/29/2006 09:19:00 PM | 0 comments »

The markets closed very strongly today as Bulls bought the dip. I've been waiting for confirmation from the Russell and it looks like it is close to giving it. Technically, it is still at resistance but RSI is confirming the move. It looks like small caps may be back in the near term.
Here is a zoomed in version of my nasdaq composite chart showing a bull flag breakout. The target for this move takes it up for a retest of the broken trendline.

As I suspected yesterday there were some strong moves in tech stocks especially late in the day. Keep an eye on the charts I mentioned last night as well as NVDA, FFIV, DRIV, VRSN, MRVL, AMD, etc. One thing I will add tonight, if I was holding a lame stock right now, I would take advantage of whatever move we get here to unload it. I still feel that the markets are headed much lower at some point in the near future and that we are going to be given some great entries for shorts when this rally is over.
Good Luck,