Schaeffer's Trading Floor Blog
Stocks quoted in this article:

Last week I posted this chart of the QQQQ...


Created with SuperCharts by Omega Research

...that showed it was having trouble with a zone near 38. The cubes barely squeaked out a close above this resistance on Tuesday but could not gain any traction and fell back below yesterday. Today's action has this looking like a firm rejection...


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Support Break

by 2/17/2005 2:53 PM
Stocks quoted in this article:

Technical note...The SPY has now broken below that support zone I mentioned below...


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Stocks quoted in this article:

Sharlee says - "If you think CSCO breaking down will pressure the market, just watch Mr. Softy."

My response - Yup. Its not often that I get to respond in rhyme, so I want to repost some comments I made last Friday with regard to big cap stocks...

    Wall Street has argued the bullish case is a lock
    Their fundamentals and outlook are as solid as a rock
    Gloss over the PFE/MRK/FNM woe
    Don't notice MSFT/CSCO/WMT near their low
    What the Street doesn't get? Good company doesn't equal good stock!

Regular readers are probably all too aware of my aversion to Microsoft. Ahead of their earnings last month, I noted that optimism was high and then followed up the next day with the chart below ...


Created with SuperCharts by Omega Research

Then I said that it wasn't setting up as the most constructive situation and with it back its recent lows, nothing makes me feel any better about it...


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Stocks quoted in this article:

Earlier today I noted some short-term support on the SPY...


Chart Courtesy of Thomson/ILX

...near 120.5. The SPY bounced at this level earlier today but failed to get too far. Now it has pulled back to this zone and is trying once again to bounce...


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Stocks quoted in this article:

In response to my "unbounded possibilities" posts below, Tim says - "Funny you mention traffic flows. Ever notice that in heavy traffic there are people that jump from lane to lane (typically right before their lane starts moving) in hopes of getting there faster and there are people that "stay the course" and plod along in their lane, never looking to make a change and then there are those that immediately jump in the passing lane hoping to zoom ahead of all others. The same can be said of traders. "

My response - Good point!

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