A day of disorientation for NASDAQ
After a big pop for NASDAQ on Monday, it would not be surprising to see some amount of profit-taking and "consolidation." Or, maybe a continuation of the rally. But the main outlook for the day is that market participants will be disoriented for a day or two or three until they can see how the real trend develops after that pop.
The biggest risk is that the short-term bearish speculators will bide their time for a few days and then all jump on in unison and slam the market with another 100-point decline as we have seen happen in the past. That's a real risk, but certainly not a certainty.
Even if we do see a 20-point pop, which is very possible, that won't be enough to cement the gains from Monday.
Whatever does happen with NASDAQ today will not be a reliable indicator of its near or medium-term trend.
-- Jack Krupansky