Wally: Oh no, Ralphie's back!!! Time to buy some crimson underwear??:
Attention Prudential Securities clients: Be sure to access Ralph's
Daily Technical Outlook in the Commentaries section of your online
account. June's edition of Ralph Acampora's Tech Talk, Setting
The Stage For A Better Second Half, is now available, but only for
Prudential Securities clients. Log on to your account and access this
multimedia presentation. If you do not yet have online account access,
click here to take a virtual tour and enroll online.
This outlook is based on Ralph Acampora's technical analysis and
constitutes opinions which are subject to change. Contact a Prudential Securities Financial Advisor
with any questions you may have. Remember that past performance is no guarantee of future results
and there is no assurance that his forecasts will be obtained.
Today's Topics:
U.S. Stock Market Outlook
Sector Standings
June 5, 2000, 11:25 AM EDT
Prices as of close on 6/02/2000
U.S. Stock Market Outlook
Near-Term
Last week the stock market staged a very exciting show for all of us. The rebound was led by
technology, insurance and banks; this advance also broke many downtrends that had been in force
for the past several months. One barometer actually registered an all time high?the S&P Mid Cap
Index.
From where we sit, the technical inputs now suggest that the low for the May/June period is in
place. Obviously there will likely be concerns about future economic numbers and these concerns
will likely create more daily fluctuations--but this is all part of the process needed to set the stage
for higher prices over time.
The key to all of these wild swings in price is ROTATION. We continue to monitor our list of
attractive names below?we will do our best to highlight those stocks that are coming to the fore.
We also must stress that as the new leaders emerge, there will most likely be stocks that suffer as a
result. On Friday it became apparent to us that energy, drugs and some consumer issues were
being sold as money rotated back into the now depressed tech issues.
What would we like to see in the days ahead:
A NASDAQ Composite move above the 4000 level; this would be a breakout from a
double bottom pattern.
A continuation in the expansion of OTC breadth?at least 2 to 1 advances over declines for
a longer period of time.
Must see the S&P 500 close above 1483; the Russell 2000 must break above 520; the
Dow Industrials must breach 11,450 and the SOX needs to exceed 1206.
We don't want to see any serious break downs in the averages, etc.:
A close below 10,201; this would be a ?red flag? for the Dow. And a close below 9700
would be very negative (crimson flag) on the Dow
The NASDAQ Composite level: 3042.66 (yellow), 2923.32 (crimson).
Sox Index level is: 821.58 (crimson)
S&P 500 levels are: 1375 (yellow) and 1325 (crimson)
Sentiment: We do not want to see the weekly Bull/Bear stats climb above 55% (yellow) and
60% (crimson) |
