Don: Re: "As you stated previously, the SOX did not lead at the APRIL bottom. It may be possible that with EXTREME SELLOFFs, the SOX may not have to lead."
Good point. I suppose so long as there is leadership somewhere in the Nasdaq.
I looked at the August-October interlude rally of 1998 and the Sox did not lead that rally either. And that was after an extreme sell off as well.
Here is the COMP:
stockcharts.com[w,a]declynmy[d19980801,19981030][pb50!b200][iUb14!La12,26,9!La12,26,9]
Here is the SOX:
stockcharts.com[w,a]declynmy[d19980801,19981030][pb50!b200][iUb14!La12,26,9!La12,26,9]
Note the first three or four days after the late August lows in the SOX and you will see a retest of sorts marked by a doji at the end of that retest. Note how the COMP did not have a retest like the SOX.
Interestingly, after the final low in October of 1998, neither the COMP or the SOX had any retests in the following days. |
