Monday, January 14, 2008

A wishy-washy Nasdaq analysis

The Nasdaq and Nasdaq 100 have a very interesting setup. If we continue to bounce up, especially on lighter volume, look to go short at the 2580 and 1985 price point for the Nasdaq and Nasdaq 100, respectively. This is a classic "support becomes resistance" situation. There is added validity to these resistance levels as both are TDST levels.

I wouldn't jump in with both feet, however, as the sentiment out there has gotten extremely bearish. I wouldn't be surprised if this bounce went a lot higher than people expect, especially with some big interest rate cuts on the way.

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