Thursday, September 04, 2008

Today is a good day for a rally

After yesterday's hits to tech indices I assumed a definitive bearish stance, but since reading Richard Lehman's update it may not be so.


The index which will should the others higher - particularly as tech hits the ropes - is the Russell 2000. I am looking at the developing handle and so far so good for bulls.


The Dow held its 50-day MA, so even in its struggles there is room for a support bounce (stochastics are neutral, so it's by no means a high probability event).


Even those hard hit tech indices have support to look too. The Nasdaq has the 50-day MA and a band of support which stretches from 2,330 to 2,350.



Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
 
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