Wednesday, October 6, 2010

DJI Flat - Nasdaq Down

Follow Me on Facebook Follow Me on Tweeter
We had Nasdaq 100 down today, when it lost more than 50% of yesterday loss - this good for Bears. On the other hand the DJI index did hold the ground and stayed at yesterday close level - this is good for Bulls. The S&P 500 index was between them and it was ready to follow the strongest one.

This is a mixed situation. We have to keep in mind that in September the Nasdaq 100 up-move was much stronger than the DJI and S&P 500 up-trend. Respectfully, the Nasdaq 100 could be considered to be oversold stronger. Yet, as I previously mentioned, if an index is oversold and predisposed to move down it does not necessary imply that this index will go down - it is good to wait for some reversal confirmation.

No comments: