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April 24, 2006
A Pair of Bearish Engulfings for the Nasdaq
Tech bulls were rattled on Friday as the Nasdaq opened strong and closed weak to form a big bearish engulfing pattern. The second attempt to break above 2350 failed, but the index remains above support at 2300 and a total breakdown can be averted as long as this level holds. A break below 2300 would negate the late March breakout and turn the daily chart/trend bearish. Techs were leading the recent rally and their leadership would be sorely missed.
Posted by Arthur B. Hill at April 24, 2006 03:26 PM