A Close Look At The Major Averages

All 3 major averages closed higher on the day with a rally in the afternoon around 2:00 just like yesterday. If you look carefully at the above chart you will see I overlayed the retracements on all 3 averages. The SPX already retraced more than 62% of that 3 day move down.. The dow and the nasdaq are still holding within the retracement zone with the nasdaq being the weakest index out of all 3 indices.. Putting downward pressure on the nasdaq today were the semis ($SOX)... If you are bearish, I think the key is to watch the nasdaq and the semis.. If the market does turn down, the nasdaq and the semis are where you want to do your shorting..It seems like money is going into commodity stocks and coming out of tech..If thats the case, commdodity stocks (metal and oil) is what you should be buying especially if the dollar conitnues to move lower..