I'm beginning to feel like I'm watching Groundhog Day. Once again the major indices were saved from a lower close by a crush of last hour buying. Volume, while still about average, was again noticeably lower than it has been for the previous few weeks. We're in the midst of retesting last Friday's highs on the Dow and S&P 500. For a change, the NASDAQ is lagging on this run at the old highs. At this point, I feel confident in making a prediction: we're either going higher or lower! :-) But seriously, we're either about to make potential double-tops, or breakout above Friday's highs. Which will happen? I have no idea. I'll just wait and see, and play what's dealt. I think it's also worth noting that the indices made doji patterns today. That pattern is a sign of indecision. Perhaps tomorrow's PPI report will help people to make up their minds.
Here's the NASDAQ Daily chart:
And the S&P 500, which got repelled by 1,000 again today:
I thought I'd post Roxio's chart as well. It looks like the market isn't buying (pun intended) the recent rumors that the company is a takeover target. Notice how it keeps spiking up on these rumors, but quickly sells off. Perhaps the people that are starting the rumors are the same ones that are selling.... nah. :-)
Michael, I made the same "Groundhog Day" comment on M*. The 1000 level is actually the best resistance we've seen. I see maybe one pop higher for this rally before July and the "unfavorable season" come.
Here we go again!
Yes, indecision. But I just can't see stocks going any higher. I mean, really, who is going to do the buying?
The point that you raise with Roxio also argues for falling prices. "Someone" is / might be spiking up the price in order to sell off. If that's the case, then once they sell off everything they have, price should go lower. I made a similar point about NYT stock on my blog.
Could it he the hedge funds selling into strength?
I just wanna say for the record that I am not starting any Roxi rumors. ;)
However, I will commit heresy on this site and suggest that Roxi is "cheap"! P/S and P/B are BOTH near one. Strange that at this point in the latest tech bubble that this kind of stock is still this low.
hey, none of that fundamental talk on this site! ;-)
Couldn't help but sneak that in!