Monday, January 24, 2011
Looking at the Q's, we should get another day or two until we hit resistance at roughly 57. Until we break through that area with a significant breadth thrust I would recommend trading with caution or remain in cash.
We either break through causing another short covering run to higher levels or we bounce off and possibly make lower lows. We're do for a decent pullback, but normally when everyone is expecting the same thing the market finds a way to do the opposite.
Two sectors that caught my eye today were Electronics - Measuring Instruments (NVMI) and a mixed bag of Semis from solars to specialized. NVDA looked like the best break out from the bunch.