May 5, 2008

Microsoft withdrawing its buyout offer to Yahoo! dominated the financial news today and weighed heavily on the markets spending most of the day in the red. After hours showed Yang, in an indirect fashion, admitting that his game of hardball probably wasn’t such a smart idea and is willing to re-open discussions, which should help the shareholders of Yahoo! and the market alike out tomorrow heading into the open. Outside of the large amount of volume across all of the indices, the market is pulling back nicely, and if we can consolidate over the next couple of days, the bulls will get very interested and likely push the market higher.

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