Jul

31

2005

Nasdaq Faces Resistance

It’s been quite a ride for the market over the last couple of months and there really isn’t any reason to think it can’t continue.. which is what has me a bit on the cautious side.  While the market looks very healthy here, there is a bit too much optimism out there.  Not to mention the Nasdaq will face some pretty stiff resistance around the 2200 mark.  I think this level is every bit as important, if not more so than the resistance at 2100 it cleared on July 8th.  Its a level at which the Nasdaq has been unable to clear at the beginning of ’04 and at the beginning of ’05.  Whether the 3rd time is a charm is anyone’s guess at this point, but history should make you swing just a wee bit to the side of caution.  I’ve certainly begun to move off margin and will be vigilant about locking in profits should the situation arise.  At any rate, should be another interesting week.. never a dull moment in this business!