NASDAQ poised at the fork in the road, again
Nice pop for NASDAQ on Tuesday, showing that there is indeed at least some bullish sentiment out there, but the question is how much. After any big pop, which typically involves a fair amount of short covering, a lot of traders become biased for consolidation or even reversal. NASDAQ futures are down slightly, indicating that corrective bias, but... very often futures are the opposite of the sentiment of investors and speculators on the sidelines waiting to place their trades as the day progresses who have the opposite mindset.
NASDAQ is also once again in the upper portion of its recent trading range, so unless there is some serious, real investor money ready to flow into the market, NASDAQ could quickly run out of steam before it hits the top of the trading range, and reverse and head back towards the bottom of the trading range.
I do think that once the "sell in May and go away" anxiety is fully behind us, as well as the lingering numbness of the winter and lackluster Q1 results, things could pick up. But right now the market is still somewhat confused as to its ultimate direction.
I'm positioned as a bull, but with some reserves to take advantage of any big dips in solid technology stocks.
-- Jack Krupansky