Aug

02

2005

What Resistance?!

The Nasdaq led the way today as potential resistance around 2200 (see yesterday’s post) proved to be no match.  Volume edged higher across all indices and closed near the highs of the day.  The action doesn’t get any more bullish than that.  While today’s action was significant and yet another indicator of great market strength, I think more important will be the follow through action over the next week or so.  Will the Nasdaq hold and create a new support level at these four and a half year highs?  Let’s see if the Dow can break out of its trading range between 10,600 and 10,700 and make a move on Dow 11,000.  Now, that might even get old uncle Larry off his easy chair and into the market again, fueling a wild rally to Dow 12,000 by the end of the year.  OK, I’m getting ahead of myself.  I’ll stop now.  Actually, I wouldn’t mind seeing a 2 – 3% pull back and consolidation throughout the month of August, creating entry points in stocks that have gotten ahead of themselves, then a big end of year rally.  Maybe then, just maybe people will begin to start talking about stocks again at cocktail parties, instead of real estate!