Oversold Market Likely to Continue Assent

The NASDAQ 100 has pulled back to its 20-day average as money flow and other indicators continue to positively diverge. This indicates that accumulation has been taking place propping up the price. Meanwhile the SMH held where it had to and should move higher off of its breakout point. The market, which has been overbought recently, has now moved into oversold territory and positive price action and positive technicals favor a break higher as we move into the last couple weeks of 2005.