Some impressive moves, particularly in tech, has the indices nicely positive. The question on everyone's lips is 'can it hold?' As for the leaders, well, the techs and chips were hardest hit; those hit hard typically bounce hard.
All clear? No. SP500, NASDAQ, NASD 100, SOX have all rebounded to the 50 day MA. A powerful price move, but the potential head and shoulders has not been defeated. Indeed, NASDAQ is at the point where a right shoulder would apex; SP500 as well for that matter. Thus, a nice bounce but not defeating the bearish patterns that are trying to set up. A good move for sure, and this can be the catalyst for more good moves. At this point, not quite there.
Picked up some V, PEP, looking at PG and TNDM. HUBS is interesting but not much volume on the move. As for existing, positions, letting them rebound with the idea we let them go as far as they will on this move. With several indices already back at the 50 day MA, a further move remains problematic, but we are willing to give them a chance.
SP500 20.45, 0.72%
NASDAQ 94.99 1.23%
DJ30 149.99 0.59%
NASD 100 1.46%
Jon Johnson, Chief Market Strategist
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