Follow through day

There isn’t much new on the charts to show, so I’ll just write in my commentary. There was a nice follow through today in the major stock indexes. Still the strongest market is the Nasdaq 100, although some other indexes had a bit higher percentage gain. Of course, they had more to make up as the Nasdaq didn’t fall to new recent lows like the other indexes did. Those three tails (refer to yesterday’s chart) held, as did the three day pivot after early attempts to take it out. Trying to trade the upside on the Nasdaq was not easy because doing so would be trading in front of the Fed wording on inflation and sub-prime mess, Cisco earnings, and generally bearish mood in the financials. After the bell Cisco reported a penny better than expected, but it wasn’t until the guidance that the stock took off to the upside in after hours trading. If it can hold until the opening, the QQQQs might get a nice lift on Wednesday. I’ve seen many times a stock up sharply on earnings, and then all the air gets let out by the opening and the stock declines the next day. Hopefully things will turn out better this time, so the Qs can get a bit more of a bounce out of this. I still think a retest of the lows will occur, although its possible the choppy, violent back and forth movements of the last several sessions took the place of the re-test. It will still take quite a bit to turn the other indexes back to the upside. I would only trade the strongest chart pattern, and at the moment that happens to be the Qs.
Not much to say about gold, as it is still retracing a bit from the push up last Friday.
I added the DJ China Broad Index, and the DJ World Index to my trend summary page. I may add the S&P sectors as well.

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