| The pressure will be there for many of the major players this coming week. Despite the 400 pt move in the DOW on Thursday, the structure of the charts dictates that the distributions continues. This week will place great pressure on companies like ORCL, PMCS, SUNW, MYGN, JNPR, CSCO, SAWS, SNDK, KO, YHOO and SANM. The pressure is also there for the COMPX overall. The close on Friday for the DOW was also very bearish. The DOW is also on the cusp of buckling with stocks like MSFT, IBM, SFA, WMT, JPM, C trading in very tight ranges. These companies over the next couple of weeks will be FORCED to break in one direction or the other. A breakdown for any of them should be indicative of the group as a whole considering the fragile structure of the DOW overall. I think this will be the major item to watch during this timeframe. Breakdown from this level implies a much more drawn out bear market. It could also add months on to any type of bottoming action for equities as a whole. |
