Buyers of Nasdaq stocks finally took a stand Friday. But can a one-day rally erase the negative psychology that was built up during four days of selling
The huge comeback Friday of biotech and chip stocks suggests the Nasdaq has likely put in a short-term low, said Terry Gabriel, technical analyst at IDEAglobal.com.
Going forward, however, he believes it will be hard for the Nasdaq to establish a clear trend. Get used to more wild price swings, he warned.
The problem with many technology stocks, Gabriel continued, is that they've built in great earnings expectations for the remainder of the year. If there's any disappointment, he said, many stocks can get hit hard.