The bears were hopeful, but the poor opening from Cisco was bought. An early release of poor earnings from Disney prevented a close at the highs. We had 3 down days this week and 2nd day of technical distribution with the volume ticking up in NASDAQ due to the Cisco news. Is this a change of character? We are up 5 straight weeks after all. On the one hand, we have big selling after hours due to a rumor that China will be forced to raise rates again to contain runaway inflation and dissent at the G20 meeting regarding currency manipulation between China and USA. So far the ES future had briefly penetrated the low two days ago. If the future holds, we will be gapping down for the 3rd day in a row. On the other hand, we are about to enter POMO zone and a generally bullish option expiration week. We also have the GM initial public offering mid next week and I doubt Uncle Sam want to see its investment fall before the IPO. Is this a slam dunk for the bulls?Related posts:
