A Quick Bounce

I put this chart together for the NASDAQ 100 last night. It was setting up with that reversal pattern into the 1,810 range.



Look where the NDX opened today and how it traded in the first 40 minutes today. The low this morning was 1,807! That is nice 27 point rally (1.5%) in 40 minutes…



The Semiconductor Index ($SOX) broke its key support level this morning, but the way the markets have been trading lately, it could recover the 330 level today, causing this morning’s plunge to simply be an exercise in shacking out some stop loss orders.

A weak rally into 330 over the next few days would be very ominous.