Another NQ chart (NDX future) showing the projection from last week's high/low which, surprise, has 100% at 1831, the exact high overnight. Add 1828.25 gap open and it's little wonder we saw some profit taking, but as long as 1815 holds, bulls are in control.
The market is very emotional now, wavering between the dip buyers (who have suddenly found religion) and those that remember the pain and are using this rally to offload some stocks. I find it interesting that so may have switched sides on a dime even though the Fed dovish stance was pretty much a given. I don't trust this rally and I think the macro conditions are still of deep concern. We have gas prices moving up to levels we saw last summer, even though crude is not even close to 70 (the crack spread is inflationary, no doubt). Re-examine your portfolio and shed the losers, just in case. These post-Fed rallies are usually a one or two day affair, then some reality sets in.
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on Thursday, March 22, 2007 at 3/22/2007 12:41:00 PM.
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