Mid Cap, Russell and Technology support lines

On October 10 Tech gave a complete short signal closing at 755.13, as I posted before I didn’t take the short suspecting a quick rebound that is more than often associated with the first short signal for a stock or group

Tech is trading clearly below the long positions support line formed with the daily ranges.  The Google blunder isn’t exactly helping the group, I now pronounce the Tech group officially defunct; two possible scenarios are developing for Tech.



# 1, Tech will surpass last week high today or tomorrow, if not, that can happen next week with this week high acting as the stop, that move will halt the drop momentarily.
, # 2 less likely, Tech will continue down next week without crossing above past week high, possibly the others group will follow and then a trendless short period will begin. After that, look out below.

On Monday Mid Cap traded below the support line at 524.33, for the last 3 days it is above again positioning itself in long territory, I won’t initiate long positions in Mid Cap before seeing tomorrow close. Weakness in a group as large as Tech probably will drag others groups.

The Russell is showing a positive week at today’s close although trading below the support line, the lagging moving avgs. are starting to show a kind of flatlining.

General positioning of the Markets and groups are showing a probable important drop for the following weeks, I am still out of longs and waiting for short opportunities.
לילה טוב all