Wednesday, February 28, 2007

Market Update

The markets have rebounded from yesterday's loss. As of this writing, the QQQQs are up .8%, the IWNs are up 1.1% and the SPYs are up 1.3%. All of the markets are establishing some strong intra-day support levels.

We may be seeing two technical patterns right now.

1.) An inside day -- think of this like a triangle pattern.

2.) A dead-cat bounce. Prices drop hard, then rebound slightly. It's akin to dropping a, well, dead cat from a high height (sorry for the visual).

As with all technical analysis -- it's about probabilities not certainties.