I love how the market sets itself up for these ‘big bad events’. You can just see the anticipation, and now hesitation, over tomorrow’s jobs report. The NASDAQ has rallied from deeply oversold territory right smack into several levels/types of resistance. It’s now perched just below the top of its downtrend channel, just under 2000, and the downward sloping 50-day moving average looms just a bit higher. Add to that yesterday’s hanging man as well as what looks to me like a deliberation pattern and overbought stochastic. All of that tells me that the NASDAQ is a screaming short under yesterday’s low. Of course the report tomorrow could change everything and launch us through all that resistance. We’ll see.

NASDAQ Daily Chart

As always there’s some interesting action taking place under the covers of the indices. How about that 25 million share shooting star on TASR yesterday? Has it finally made a blow-off top, or did it just suck in more bears? I don’t pretend to know, but I do know that the action in that stock is insane and anything can happen.

TASR Daily Chart

NetFlix (NFLX) may get some TASR-like action today. Motley Fool posted an article today arguing that it’s undervalued. There’s also a WSJ piece that says that it’s pricey, but it may still rise further due to the high number of shorts piling on it. Sounds like squeeze time.

On another note, thank you all for your e-mails and comments about my friend’s death. I really appreciate the support.