Today was obviously a good day for the bulls with the Nasdaq up 1% and the S&P 500 up 0.72%, both on increasing volume. Because the Nasdaq has broken above its December highs, its chart looks slightly better than the S&P to me. I think any hopes the bears had of the 50-day moving averages breaking have to be slipping away. (And so much for that falling three methods pattern!) However, the NDX/QQQQ and Dow are still beneath their 50-day moving averages. That may change tomorrow, especially for the QQQQ, thanks to the post-earnings action in MSFT and BRCM in after hours trading tonight. So all of a sudden things are looking much better. It almost looks like clear sailing to the January highs. The one hurdle that all the aforementioned charts have in common is the January downward sloping trendline (see the blue lines on the charts below).
The earnings calendar is light for tomorrow so I don't much threat from negative earnings news in the morning. It could be a wild one in the semiconductor sector tomorrow based on how BRCM's trading tonight...
I don't know what the track record is, but I'll bet that if you were a buyer of tech stox every time the mkt dipped after Intel's crappy earnings releases, you'd have made some pretty good money over the last 3.5yrs.
I'm still curious what happened to Sandisk? 68c compared with forecast of 62c earnings and a hugely profitable quarter. So why did it drop over $10?