Nasdaq Composite Index (2156)

Back in May 2005 (Nasdaq 2075), I said that in a strong recovery we could hit a wall of resistance in the area of 2200. We're knocking at the 2200 resistance door now, and the underlying trading pattern is gaining strength. 2200 will still likely cause a short term problem, but I now think that after backing and filling, we will break above it. If we do, it will pretty well wipe out my June assumption that we might move lower out of this trading range beyond the near term. I'm revising my intermediate term view to bias positive rather than bias negative.