SHORT TERM: New home sales plunge, stocks soar.
Overnight the foreign indices were generally higher, and europe came in about a 1/4 percent higher. Google also helped as the NDX/NAZ had a gap up opening, yet the DOW/SPX opened mixed. Selling came in at the onset and pushed prices lower until about 10AM, when the governement released the new home sales. Bad news is good news when you are looking for interest rates to steady. The bond market rallied taking stocks with it. The NDX finally penetrated the three day resistance level of 1678, and powered higher. Since it has just taken out the last two days highs, the daily charts are looking better. The positive divergences that set up yesterday are at work today. Taking a good long look at the near term wave counts this weekend. Still perplexed at the weakness in the NDX. Will let you know what I see. Best to your weekend!
INTERMEDIATE TERM: uptrend
LONG TERM: bullish