Morning Report – January 28th, 2014
The NASDAQ composite managed to rally back above the 4100 level before succumbing to selling pressure once again near the end of the trading session. An objective look at the NASDAQ shows that it is still in neutral territory even though the 4100 level was breached at the close with the index closing at 4083.61 at 36.96% of its daily range. The 36.96% of the daily range tells us of the Bulls were able to bring the NASDAQ back up more than one third of the way from the intraday low of 4052.6299. Also, new highs versus new lows stabilized, and the advancing issues versus the declining issues were not as negative as the day before. You can clearly see this on the NASDAQ chart below.
Most of the analysts whose commentary I have seen seem to think this is just the beginning of the correction. Maybe it is, but we have to let the market prove it to us. Read full report