Trying To Catch A Second Wind

The market is appearing to be running out of breath and trying to catch a second wind. The SP500 has found temporary support near a supporting trendline. But the recent downside momentum might push this index down to test the 100 SMA for support and to fill the 4/20/2011 opening gap near 1312 level.





The tech heavy Nasdaq 100 was dragged down by AAPL & GOOG, both of them were down more than 2% today. This index is trying to hold support at the 50 SMA, and it’s only about 26 points away from filling the 4/20/2011 opening gap near 2306. Having a supporting trendline crossing the 2306 gap level, the 2306 will act as a magnet to pull this index to fill the gap.





Until the market re-establish support or made a clear break on the downside, I will be on the sideline.