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Trying to staying positive

HAVING TROUBLE PRINTING?
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While the Nasdaq continues to drift lower, the Internet Index (INX.X) is fighting to remain in positive territory.

Internet Index Daily Chart

Winning the fight would also mean staying above the 50-day moving average, which is trying to flatten out. If prices can consolidate above the 50 MA, a realistic run could be made at 195 which would also put INX in a place to break out of the channel that all technology sectors are stuck in. A failure could see prices falling back to the middle line of the channel.

Ebay Daily and 60-Minute Charts

Ebay made a valiant effort to complete a massive double bottom pattern before it ran out of steam. The current decline has now pushed prices below the 200-day moving average. Looking at the 60-minute chart reveals a head and shoulders top with an island reversal, well almost, forming the head. The 38.2% retracement bracket makes a pretty good neckline, and 50% bracket, at a cluster of previous highs, should mark where a decline would stop in the short-term.

Yahoo 60-Minute Chart

By breaking the up trend, Yahoo has also ended the nice run up it has had in April. A break below $17.85, could spell trouble for the Internet portal.

Jeffrey Canavan
Assistant Analyst
www.PremierMarkets.com

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