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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Art Bechhoefer who wrote (10293)	4/11/2000 6:39:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 60323

Art, I think that the basic technical question is whether or not we are in a bear market, if we are not and this is just a "severe correction", then everything is fine and dandy, if, on the other hand we are in a bear market, we are going to see contraction of PE's and valuation measures, and stocks like SNDK which discount the future a good three years ahead, may suffer. As for the 4000, I am not sure if that is the correct test. In order to successfully test the bottom we should have either closed above the closing last Tuesday (around 4150) which we did not or bounce sharply from somewhere above the intraday low of last Tuesday, which we did not either. Furthermore, the technical picture would have been brighter if the ascend was not stopped at the 50% retracement on low volume but reached the 62% retracement (4570) with higher volume. Furthermore, the put/call ratio on the decline and since then was pitiful (max of .55 and declined during the rally to .37) indicating that most participants still believe this was just a 'correction". So at least, as far as some technical indicators are concerned, the market is still in trouble. Of course, you are right in not trusting TA analysis, but right now, the TA does not look good, IMTO. That can, of course, change on a dime. Zeev