The
Nasdaq was down 0.64% to close at 2729 on slightly higher volume. At this point we can only say that we are retesting the base from Monday's breakout move. However, the
NDX 100 shows a slightly more negative picture due to the completion of a
bearish evening star reversal pattern. Today's tech weakness was led by the
SOX which was down 2.1%. Most major tech sectors ended the session in the red except
internet which was unchanged and
biotech up 0.14%.
Today's movement came from
lower than avg volume (1884, vs. 2161 avg), with
decliners outpacing advancers (1144/1815) . However,
new highs outpaced new lows (147/62).
Several companies have lowered guidance ahead of earnings, most notably
NTRI which is off by $11.00+ or 22.6% in AH trade.
Economic Calendar: Initial claims in
pre-market (consensus 310) and Factory orders at 10:00 (consensus 2.8%)
In reviewing my
watch list, I noticed several failed BO attempts, as well as, a few bearish engulfing bars and bearish evening star patterns. Profit taking at these levels is healthy given the level of the extension since the
FOMC decreased interest rates. Failed patterns are prime opportunities for shorting because failures often result in fast moves in the opposite direction.
Companies moving in after hours trading in reaction to earnings:
Trading Up: TISI +6.7%;
BLUD +2.7%...
