SOME NASDAQ PROFIT-TAKING AT 2,000 LEVEL

VOLUME PICKS UP... Traders apparently decided to lock up some profits at the Nasdaq 2,000 level. The daily chart shows the Nasdaq hitting an intra-day high of 2000.90 today before losing almost twenty points. That downside reversal day was also accompanied by the heaviest trading in a month. My earlier update talked about the fact that 2098 carries a lot more chart significance than 2,000. Apparently, a lot of traders didn't agree. It's not unusual for traders to take some profits at important round numbers. The selling in the Nasdaq caused small losses in most of the other market averages -- although the Dow still ended with a modest gain. Chart 2 plots the Nasdaq hourly bars and shows where short-term support levels are located. The closest support level is at 1931. If that's broken, more support ranges from 1916 to 1878.

Chart 1

Chart 2