The indices sold off on the weaker than expected GDP numbers and one of the main casualties was the tech heavy Nasdaq 100 index (^NDX) which dropped back by 1.5%. A research report released during afternoon trading by Goldman Sachs reported that motherboard demand is slumping significantly and this hit a variety of specialized tech sectors quite hard including the semiconductor sector (SMH) which fell back 2.4%.

While broad market sentiment still seems to be favoring the soft landing scenario, the downdraft could pick up some near-term momentum if this index was to falter in the 1680 area.

The S&P 500 cash index (^SPC) pulled back 0.8% on the economic data but the close still remains closer to the upper volatility band than the 20 day EMA suggesting that index traders were not unduly surprised by the GDP slowdown.

Another measure which suggests that the GDP data was not a shock to market participants was the relatively minor increase in the CBOE Volatility index (^VIX) which moved up a tiny 2.5% on Friday and still hovers near its all term lows.

The Nikkei 225 (^N225) seems to have been more effected by the weaker US growth figures and this was underlined by coincidental evidence of inventory buildups in the Japanese economy. In Monday's trading the Nikkei pulled back almost two percent in its worst performance since early August.

TRADE OPPORTUNITIES/SETUPS FOR MONDAY OCTOBER 30, 2006

The patterns identified below should be considered as indicative of eventual price direction in forthcoming trading sessions. None of these setups should be seen as specifically opportune for the current trading session.

Alliant Tech Systems (ATK) produced an inside day formation that coincides with the 200 day EMA where it may find near term support.

We drew attention to Avid Technology (AVID) recently as the chart formation was pointing to a bearish ascending channel following the late September plunge. On Friday the selling resumed with a 7.5% decline on heavy volume leaving a negative looking chart in the intermediate term.

The chart for Celestica (CLS) provides a good example of how negative divergences in money flow and momentum presaged the precipitous fall in Friday's trading.

Cisco Systems (CSCO) is one of many stocks that have had a very good run in the last few weeks and that now look to be on the verge of entering a corrective phase.

Standard Pacific (SPF) dropped more than six percent on almost three times the average daily volume and reveals a failed bullish flag formation.

Target Corporation (TGT) registered an NR7 and inside day formation and the underlying momentum and money flow are deteriorating.