Stockmarket Cycles update for Thursday, December 17, 1998. U g l y, that is the technical picture for the overall market after today's action. Here are a few facts: Today the Nasdaq 100, the high cap list of the Over the Counter Composite closed at a new all time high close. The Nasdaq 100 consists of the Microsofts, Dells, Intels, Cisco Systems and Oracles of the World. By the way, those five stocks represent 56% of the total capitalization of the Nasdaq 100. At the same time the Nasdaq 100 was hitting new all time highs, there were more 52 week lows than highs on the Over the Counter Composite. It is a sobering statistic and was also true on the New York Stock Exchange with 61 new highs, and 68 new lows. On December 8 the S&P Cash went to a new all time high, intra-day; it then declined into December 14. As of today, the S&P Cash has retraced over 96% of the decline from the December 7 close to the December 14 close. At the same time, the daily advance-decline line which also declined from December 7 to 14 has retraced 12.8% of its decline. It continues to show the horrible internal deterioration in the stock market and although it cannot rule out a new high, it argues against it strongly argues against a substantial advance starting from these levels. The market advance grows more and more narrow and it seems very likely the market will soon pay the price.
Interesting Times,
John |
