May 7, 2008

We got enough negative action out of the markets today to keep Wall Street honest. Some not so hot economic reports were setting the negative tone for the market’s action. NASDAQ, heading into today, had been acting as if it would just continue to soar higher, as well as the other major indices had begun looking untouchable. That is why we knew we would eventually get a day out of the market like this. We wouldn’t read too much into today’s rally. While the selling could continue, this was long overdue, and gave a lot of investors reason to take some profits off of the table that had been earned over the past couple of months. The nicely established trendline will be important in maintaining. We’ll see what unfolds in the days ahead.

Let’s look at the NASDAQ and S&P charts…