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, the free stock alerts, market alerts and stock charts website