NASDAQ headed for a day of more serious consolidation

We were lucky to actually see modest gains for NASDAQ for the preceding two trading sessions despite the interest in consolidation after the recent advance. Today we likely will not be so lucky. Nominally we will see weakness due to alleged disappointment with quarterly reports, but a lot of that may simply be traders reaching for any available news to justify a trading move. It is perfectly reasonable to see a serious attempt to consolidate after such a strong advance. Sure, it could turn out to be a turning point and lead to a renewed downtrend, but  that looks less likely than a day or two or three of consolidation before the advance continues.

The weather will also be a factor in the New York area, disrupting travel for a fair number of market participants, and leaving many in a sour mood for the day.

NASDAQ futures are down sharply, indicating a sharp decline at the open, but whether people really do follow through with a full-blown sell-off, or whether people buy the dip remains to be seen.

I'll be a buyer of Microsoft (MSFT) on any serious declines.

-- Jack Krupansky