West, I am sorry to say that you do not know what you are talking about, the Naz has not been oversold for all of 2001 at all, there were many stretched periods of overbought, in late January and from May 22nd to early June. Yet, in all of 2000 and 2001, I do not remember seeing zero or only one of the NDX (out of 100) under their 200 DMA, in the last 6 trading days, we had zero and 1, no more, now that is extremely oversold. Can you show me a prior parallel that was more oversold? Not only is that number extremely low (and cannot, by definition, go lower), the length of time it has been maintained (and today may add a seventh day, it is actually at a still very minimal 2, but nicely, 29 ave now bounced above the 10DMA signalling a turn around. The low on the 10 DMA series has been rising since Sep 17 when it reached a low of 2) is absolutely unprecedented. Open your eyes and smell the "cafe", find your horns, my friend.
Zeev |
