T/A by Dr.Bob...
Edited T/A via e-mail:
>>>From: ----<Drbob512@---.com>
Date: Thu, Jun 15 2000 10:38:06 PM -0700
............
The Nasdaq's late rally Thursday improved the weekly, daily and hourly stochastics but did not help the rate of change which turned neutral from having been positive. The rally was on low volume again, which has resulted in declines shortly thereafter, on several recent occassions. If we can rally early Friday on better breadth (at least 2 to 2 a/d) and volume(at least 1.7 billion shares at the close), then we may hold the gains, but weak breadth and volume will probably make this rally fail. The Nsdq is expected to have strength early in the morning.
The gap at 3582 seems less likely to fill than it did a week or two ago, as we have traded in a narrow range between 3700 and 3900, perhaps forming a cup and handle formation, after previously looking like an inverted head and shoulders.
The markets are at the mercy of the insititutions, as they provide the block trades and volume, and have subsided in their buying after helping the Nsdq rally from 3042 to 3982.
For the Summer rally to continue, we need a confirmation of the inverted head and shoulder formation with a breakout and a close above 4000. The formation is looking like a cup and handle, which has bullish implications.
Dr.Bob is not an investment advisor so his commentaries should not be construed as recommedations to buy or sell stocks. Information is believed to be reliable but cannot be guaranteed. Always do your own research before investing.<<< |
