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The NASDAQ rose during the session for the second time in 48 hours on Wednesday, and attempted to break through the 2770 level. This area is significant as it was one support, and as such it should hold as resistance with all things being equal. If that's the case, it will be interesting see how the market reacts on Thursday as this could be setting up for some type of selloff.
On any signs of resistive candles, we would not hesitate to sort the NASDAQ in general, especially considering how poorly tech stocks have done. Overall, the NASDAQ has underperformed some of the other indices on most days over the last couple of years, and as such we don't think this pattern is going to change. Right now, it looks as if we are below this area and looking to find sellers. With this in mind, we fully expect to be short of this market in the futures pits soon, but need to see that resistant candle in order to do so. As far as buying it, we are very hesitant until we get above the 2800 level.