Thursday, October 19, 2006
The sector to watch today is the semiconductors, which we like to track via the SMH. It has pulled back harshly to its 50-day average. If the current trend stays in tact, we should see it bounce today, which would prop up the QQQQ. Money flow into the blue chips continues to be good and even the tech sector has been finding late day support. Remember, the amateurs trade in the morning and the pros show their cards into the close. Pros have been buying the close for the past two days. So again, we remind everyone, don't be too quick to become bearish. The market may be overbought and may be near resistance, but signs of distribution are hard to come by.