Monday, December 03, 2007

Q slide continues

After a slow runup to the PP pivot, the Qs deteriorated down to sniff the S1 at the close. The Goldman downgrade of many of the NAZ100 big caps was evident in the continued selloff in RIMM and AAPL, among others. Volume was very constrained until the afternoon session, when the action turned decidedly negative. The last 30 minutes into the close showed increasing downside momentum, which I suspect will carry over into the morning session.
Once again, the historical bullish pattern failed to materialize. If the Qs are unable to find a footing at this level and in short order, a retreat back to support at the 49th parallel is a distinct possibility. I'm still cautious on my swing trades, preferring to play the intraday cycles between the pivots.

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