Last mentioned in 'Head and Shoulders Top on the Nasdaq ?' Today the Nasdaq looked very weak, even while the other indices were up 1%. The Nasdaq rolling over here would be the typical start of the next down leg. Also, the recent structure on the Q's (weekly, not shown) looks like a bear flag with measured moves to $27.45, $23.75 and *drum roll* $20. There are alternate projections that come off the daily charts, but paint a similar picture . $27.45 is important here for a weekly close on the Qs or it could get fun. Until it can get back above $30 it is guilty until proven innocent. Most indices are sitting at very key levels going into a Friday. It goes without saying, the onus is on the bulls here. Friday (or Sunday) has been the favorite day of the week to leak news/bailouts/rally inducing events. This is one reason so many chose not to go short over the weekend right now. By the time you can react the market opens up eleventy percent. No guarantees of one of those here, but let's just say if the market closes at new lows tomorrow it's going to make for some interesting conversations at the dinner tables of the remaining 201ks.
In the shorter time frames we are due for a relief rally, but being oversold is not a reason enough to be long the market. The market is giving us mixed signals and the news continues to be grim.
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