JULY 23 INDEX UPDATE
--------------------------
Short-term technical readings:
DOW - oversold region/borderline CLASS 2 BUY
SPX - oversold region/borderline CLASS 2 BUY
OEX - oversold region/borderline CLASS 2 BUY
NAZ - CLASS 2 buy
NDX - CLASS 2 BUY
VIX - upper midrange/borderline oversold region
NAZ NET NEW HIGHs-LOWs - +18
If the market continues down I would get a CLASS 1 BUY tomorrow in the NAZ/NDX and CLASS 1's in the SPX/OEX/DOW around WED/THUR.
As negative as things appear, the market internals were not bad. The NAZ NET NEW HIGHs-LOWs closed at +18, which is basicly flat from FRIDAY. As mentioned previously, if that continues, that would be somewhat bullish, at least for the short-term. Since the NAZ/NDX is only a day away from a CLASS 1 BUY signals, Im suspecting that the previous lows at 1600 either has a chance of holding or only broken to the downside slightly, for this specific short-term downswing.
On the bearish side, the DOW/SPX/OEX is still 2-3 days away from a CLASS 1 BUY, so hypothetically if the DOW/SPX/OEX continues straight down, that could pull the NAZ/NDX down even more.
MSFT has an ISLAND REVERSAL. As discussed a while ago, Lee bringing up the issue, MSFT represents about 11% of the NAZ/NDX. If MSFT continues down that could put a real hurtin on the NAZ/NDX.
So, for the short-term, I have mixed signals/fellings about the NAZ/NDX. Regardless of the less bearish or more bearish arguements, I will simply stick to my short-term technicals. If I get a CLASS 1 BUY signal tomorrow, especially if it is a closing signal, I will at least close my short positions with the USPIX(short-NDX) or hedge them. |
