Nasdaq

Right now I have no position in the the Dow, NASDAQ or S&P. I'm going to let the market tell me what to do. I'm still leaning towards the bearish side ONLY if I see evidence of weakness.

Stocks are beginning to report their earnings and I think that will be the catalyst behind the next move in the market. I'm starting to notice a few stocks report good numbers but instead of going higher they sold off. That gets my attention but it's still too early into earnings to start making bullish or bearish bets on the indices.

Above we have a chart of CSCO, INTC and QQQQ. Cisco and Intel both closed right on their 50 day moving average while the NASDAQ is still clearly above it's average. Keep in mind INTC and CSCO are heavily weighted stocks in the NASDAQ. So definitely keep an eye on these two stocks to see if they bounce or break their 50 day moving average.

I'm just trying to share with you some of the things that I am starting to see and watch. You want to make sure you keep track of how stocks act AFTER they report their earnings. Bullish numbers and the stock rallies, no big deal...Bullish numbers and the stock sells off that is a big deal and is bearish. On the other hand, bearish numbers and the stock sells off, no big deal.. Bearish numbers and the stock rallies, that's a very big deal and is bullish.