Tuesday, August 24, 2010

Key support level broken in NASDAQ

Another miserable day for the bulls. The housing numbers, not surprisingly I might add, were much worse than expected. With the artificial push from the stimulus money gone, and actually having eaten into future sales, one can't help but wonder about the worth of all these stimulus packages. Forget about the housing numbers. Its dumb to expect people to be buying homes when they don't know if they are going to even have a job next week. And I can't help but be amazed by all this fuss about Ireland. Does anybody have the numbers on how big Ireland's economy is with respect to California and New York? Anyway. Let's have a look at the charts of the major indices. For a while, it looked like the stocks would make a comeback today, but any such hopes were shattered by the bears in the last hour of the trading session. While S&P and Russel 2000 still have major support levels underneath (last chance saloon), the same cannot be said about NASDAQ which opened below its major support level and then fought a losing battle against it. Have a look yourself.

Only hope for the bulls - the action in US dollar today. I will be back with posts on the dollar and gold and also checking if the markets are in oversold territory after today's action.

Take care and good luck!

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