Wednesday, July 18, 2007

Qs overbought







The Qs rose to new highs on Tuesday, driven by the twin 800 lb gorillas INTC and MSFT. Both the TICK and the NYAD went sharply downslope in the last hour of trading. With INTC down 1.32 after hours and MSFT down .35, this may be the catalyst to pull the Qs back to support at 48.50 and the DIA back to 13700. IWM is not overbought and has been lagging the other indexes. It may now start to play catch-up. Volatility in the VIX Tuesday was subdued, opening at 15.58 and closing at 15.59 with a 3% range. The VIX BB is necking down to a new baseline in the 15 area.

No comments: