Thursday, April 27, 2006
Yesterday's market didn't look as bad as it felt. The Dow was retesting highs and the other indices were bouncing around their support levels. A lot of stocks we are watching however just drifted on a general lack of conviction. In fact, a lot of stocks were really struggling with support. Market leaders like BRCM just gave way to selling pressure and everyone's nerves are pretty much on edge here. We are now rolling into the end of the month with very little direction. Scans today didn't pick up anything that is really worth considering seriously as the lack of follow through in this market makes it clear that stock set ups are more of a gamble than a science. We expect to see buyers step in over the next few days, but we are agnostic about today. Unless everyone got a good rest last night and put their bull caps back on, buying window or not, today may just give us more of the same dreadful struggle that characterized Wednesday's trading. Let's hope our supports hold until buyers dare to show their faces again.