Wednesday, September 03, 2008

Expect a Bounce in Nasdaq

The bullish setup that I had been watching and trading in the Nasdaq was obliterated earlier this week. While the trend is now decidedly bearish, we are nearing a strong support zone that could provide a bounce that can be traded.

If QLD (leveraged long Qs) drops down in the $70-70.50 range, I will likely take a position. It wouldn't be surprising for the bounce to reach the 50 day ma around $75. I would likely make $74 my target and place a stop in the $68-69 range.

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