Heavy technical damage was inflicted on the markets today. All major indices lost their 10 DMA's and NDX closed at lows while also losing 50 DMA support. This comes on the heels of a strong rejection for the DOW at 61.8% 2007, a significant event. It has been a stealth sell-off, but very real to your portfolio. Add the SPX chart I showed yesterday (Nov 2000 highs resistance) and bulls are in real trouble. The entire Fed rally is pretty much erased. The next big test will be 20 DMA for NQ (NDX future) at 1780. It needs to hold, but it does look like the bounce off March lows has ended in orderly fashion (61.8% is a classic retrace)and we could see new 2007 lows in the coming weeks. There are no compelling reasons to buy stocks right now. I had mentioned a few days ago that we needed earnings to justify further gains, they didn't even bother waiting for that to pull the plug. If you bought gold and oil as I have been suggesting, you should be just fine.
VIX is hitting upper bands, but VXN still has room to grow (chart). Maybe one more low overnight and bulls should get a bounce. It will be counter-trend if NDX can't close above 1783, 50 DMA.
INTC closed at the lowest level since August of last year, although it is at 50% projection February and possible support (18.86). INTC will be a buy very soon, I have no doubt, but the break of 19 is a red flag and we could see lower 18's.
VIX is hitting upper bands, but VXN still has room to grow (chart). Maybe one more low overnight and bulls should get a bounce. It will be counter-trend if NDX can't close above 1783, 50 DMA.
INTC closed at the lowest level since August of last year, although it is at 50% projection February and possible support (18.86). INTC will be a buy very soon, I have no doubt, but the break of 19 is a red flag and we could see lower 18's.
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on Wednesday, March 28, 2007 at 3/28/2007 04:07:00 PM.
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