From a chartist perspective, Nasdaq may have reached a strong technical support of the 200 day MA. These few days it is hovering on the line and currently it seems there may be a chance that this 200day MA might hold.
A few examples of some US stocks showing technical support and rebounding off the support these couple of days would be IBM at $190, Lorillard at $110, EOG resources at $110, Goldman Sachs at $120, Union pacific at $120, Ralph Lauren at $150, CF Industries at $200, Amazon at $220, Priceline at $550, Google at $675, Fedex at $90 and Linkedin at $100. All these stocks are big priced stocks and I normally like to study these stocks to gauge the behavior of the market.
Many of these prices stated are what I termed the "Law of Gravity of prices", a theory I founded that show strong support and resistance at certain price points. And it is good that these prices have held.
However, bear in mind the market remains weak and we do not urge short term traders to go in now. Let us see a couple of days more to gauge whether confidence is back. With the major reports coming out these couple of days, it is better to wait for them to be released. A good non farm payroll might be the catalyst needed.
Btw, one of the best CEO of this century, Jack Welch last month tweeted that the unemployment rate might be rigged. Do you think there may be a chance this Friday? ;)
Rgds
Daniel
www.danielloh.com
