Tuesday, September 19, 2006
The QQQQ left a doji and the semiconductor sector tailed off at the top yesterday as profit takers nervous about giving up gains kept the tech sector from extending its gains. It looks unlikely that the tech sector indices will be able to mount any further gains from here without first correcting. The S&P and Dow are in sideways corrections, so the scenario we drew yesterday, which indicated a dip, then a rally, then a sell off, may actually skip the "dip" stage as oversold pressure is worked off in a sideways pattern. Nevertheless, there should be some good long and short side trades that last through the end of the month.