The NASDAQ 100 fell during the session on Thursday as the pullback tested he 2740 level. This is an area that we expect some support and, all the way down to the 2700 handle. Looking at this chart, we can definitely see that there is an uptrend, but are concerned as Google released absolutely horrible numbers for the session. The result was a loss of 10% of the value of the stock, and as such it put a serious drag on the NASDAQ in general.
We do see quite a bit of support below though, and as such we aren’t ready to short this market quite yet. However, if we get a daily close below the 2700 level, we would be short via the ETFs that are inversely related to this marketplace. The reason we would not go headfirst into the futures market is that the leverage could get you hurt if there is some type of sudden spike higher, which has been the case in time to time here recently.