After a modestly positive open (CPI/initial claims and LIBOR), the markets reversed at 10:00 on weak capacity utilization data followed by higher than expected crude inventories. The NASDAQ futures and Nasdaq 100 breached last Friday's lows and immediately snapped back. The lower lows were not confirmed on the COMP or the broader averages. A retest of the morning swing highs was followed by a lot of backing and filling midday.
The second half of the afternoon felt very bullish as most of the averages carved out bullish hammer reversal bars and closed near the highs. I am cautiously optimistic on the double bottom scenario. As noted in my previous post, I put some retirement money to work this afternoon and I'm holding overnight, which I haven't done in a long time. GOOG delivered on earnings after hours which is a big plus going into OPEX tomorrow.
Related Posts :
- 10/16/08 Market Recap-Extremely Volatile Trading Day
- Energy Funds and Stocks Will Move in the Opposite Direction Against Swinging Oil Prices
- The Market Has Almost Wiped Out the Gains From Monday's Historic Rally
- NASDAQ Technical Picture - Double Bottom, October 16, 2008 10:37 pm
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