The stock market has responded favorably to this morning's economic data as the major market average show gains. The Dow Industrials (INDU) trade higher by 54 points lead by gains in Boeing (NYSE:BA) $48.41 +2.28%, Intel (NASDAQ:INTC) $30.97 +1.84%, Microsoft (NASDAQ:MSFT) $60.39 +1.58% and United Technologies (NYSE:UTX) $74.89 +1.54%.
With some technology stocks in the Dow showing gains, we turn to the tech-heavy NASDAQ-Composite (COMPX) trading up 18 points and showing a 1% gain. Technicals here show the NASDAQ doing battle with its declining 50-day moving average.
NASDAQ Composite Index Chart - Daily Interval
A simple regression channel (2 std. dev.) tells us that this market is still in a downward trend and poor risk/reward trades are most likely found for the bulls. Currently, it would take some type of move above the 1,900 level to raise my eyebrows. Any bullish trades in some 4-lettered technology stocks might be correlated against this index and should a break of the 1,800 level to the downside be found, then be on alert for further weakness to the mid portion of regression currently at/near 1,750.