I think the Nasdaq looks good here (1990-2000 level), what does everybody else think? I'm not sure if we will see new highs anytime soon, but I think we move higher over the next week or maybe even two. We're at a strong support level, and some of the best sectors over the last 6 months (ie, aluminum, synthetics, communication equipment, information/delivery services) still look strong, and might make good buys at their current levels. I understand that the Nasdaq will rise and fall with the semiconductors, but I think the semi's look okay here, also. Most of the semi's got killed this morning but some (INTC) rallied at the end of the day to close in positive territory. If we get a descent opening tomorrow I will probably jump back in with some QQQ calls. It should be a short-term play but I think we COULD see some good buying action at these levels. Anyone else want to chime in? Lets here what others have to say. P.S. My market calls are almost always wrong. I'm just interested in hearing what other people on Elite are thinking.
Well, I only watch the S&P but this area we're at right now (1136-1140) should be solid support and I'm anticipating a bounce back up to the 1160 area Of course this can be negated with non confirming price action .. but my bias is for this area to troublesome for shorts - though just because it's not going to go down doesn't necessarily mean it'll just bolt up either.
How much cheaper do you think it will get and why? In my mind if we break these levels I will be looking for shorts not longs.
Here's my thinking The 2000 level is the key. When the market was going up all the shorts started selling at the 2000 level. Once we went through that level I would bet that some of the shorts held tuff; this will be their first chance to get out even. On any bounce what-so-ever I see most of the shorts heading for the door. If I was short I would get out here. Plus you have that strong support line. If nothing else I think you see a bounce here just from the support, and that bounce could turn into a big rally if it drives out some of the shorts. I also see a bullish divergence in my RSI. And, many of the strong stocks that I have been looking at are still strong. I'm going to start buying stocks tomorrow for sure. The Nasdaq just looks like a short-term trade. The market may head back down but I think we could move higher throughout the week and maybe into next week.
Very well thought out SHARP! I would definitely be getting short if we can't hold this level, but than again............I am bearish by nature.