Tech Weakness

Today (Mon. 7/10), the short-term trend line for NDX (Nasdaq 100) was broken. NDX closed just above last month's low of 1516. With earnings reports due, it wil be interesting to see whether NDX holds its current support level, which also marked the start of a major rally in October 2005. This week we could see a mild bounce off this level, but weak earnings can very well cause a break below, indicating a strong bear signal.