5/24/06
ATR - End of the Day

Well it wasn't a 100 point Dow gain or a 40 point add in the Nasdaq but it was a refreshing change to see a decent close in the major averages with relative strength in something other than Gold and Oil. Semis held well closing up .75% while the biotech sector added over 1% and the networkers chipped in another .7% for the cause.

There is no question repairing the damage that has been done will take a considerable amount of time and one should not view this action as the end of weakness throwing caution to the wind.

The S&P 500 reclaimed its 200 day moving average however little was done to repair the severely damaged NASDAQ other than a volume surge and decent hammer.

What is interesting about today and worth noting is that the averages managed to close in the green despite weakness from recent momentum leaders Gold and Oil. While we may be reading too much into this, we find it important to note that this may be the result of a rotation taking place which allowed the S&P to tack on some gains despite a large overweight in oil stocks. Well simply have to wait and watch to see if sectors such as technology and financials step up to the plate to lead us out of this carnage.

Should the decent close carry over into tomorrow, we may have some better action that will result in short term trading opportunities, however anything other than that is too early to call.

Rest up and have a good evening.

RevShark