After a huge sell-off, bulls couldn’t ask for any more than what they got today. Tech led the way, on the coattails of IBM, who projected an unexpected, but rosy outlook for 2009. Today’s news with IBM, followed by Apple’s stellar 2009 earnings performance after hours, should push the Nasdaq to extend the gains from today.
However, hovering over the S&P and Nasdaq is the 50-day moving average, which has proved to be a strong resistance level for both indices to break of late, moreso the Nasdaq, which sits right below it. It’ll be interesting to see whether Apple’s earnings can push it though this road block.
Our guess, is that with the oversold conditions the market still finds itself in, and the positve Apple News, we’ll probably seen another descent move tomorrow and probably break through the 50-day moving average on the Nasdaq.
Here’s the Nasdaq and S&P charts…