Yesterday I stated:I am more interested in the Nasdaq 100 and Russell 200 at this juncture because both are reaching an area of very strong resistance. I will be watching how these two indices perform over the coming days. If we see both indices struggle a trade could be in the cards.
Well, bothindices had problems today fom the get go. Today’s initial decline came on poor GDP numbers. The market worked its way back to close to breakeven only to have Goldman come out with a bad report on the semiconductors. This usually does not bode well for the market going forward. I would be surpised to see the bulls pay over here especially with next weeks bullish seasonality. I will be watching how NDX reacts to the 1730 area early next week. This area should act as a pivotal area going forward.
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RSI Wilder (5) for October 27, 2006
- SPY - 60.0 (neutral)
- DIA - 59.6 (neutral)
- IWM - 52.8 (neutral)
- QQQQ - 49.1 (neutral)
Andrew Crowder, Chief Investment Strategist, www.crowderinvestments.com