Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: goldsnow who wrote (51622)	4/17/2000 3:38:00 PM
From: Alex	Read Replies (2) \| Respond to of 116764

Charts warn of further downside risk By Kira McCaffrey Brecht, Bridge News Chicago--Apr 17--Technicians--those who watch price charts for clues to stock market direction--have been warning for months that readings in US stocks were weak. Now that the bubble in technology has finally burst, the question is whether last week's collapse washed out speculative excesses or whether there are further corrective forces waiting in the wings. * * * Ralph Acampora, managing director at Prudential Securities, said stocks were in a "capitulation phase." "The market is probing, which means we go a little lower," he said. Although he identified key support levels to watch at 9700 in the Dow and 1325 in the S&P 500, he said "the bottom was not in sight yet" and you "can only cross your fingers that those support levels hold." Another chart watcher said he thought the correction was still under way, with more downside risk in the weeks ahead. "The bubble has burst in speculative favorites--the technology, biotech and telecommunications sectors," said Philip Roth, chief technical market analyst at Morgan Stanley Dean Witter. "There is a major correction in progress that will take quite some time to complete. "We've seen a huge expansion in margin debt, and it will take many, many weeks to build liquidity to set the stage for another advance." Roth identified support in the Nasdaq composite index at 3000-2500, the next area where a low might be established. Support levels at 9600 in the Dow and 1320 in the S&P 500 are expected to hold amid a short-term corrective rally, but ultimately Roth expected those floors to give way, too. "This is a major correction for the market," he said. "We need to build a base and that means rallies and pullbacks that hold and that takes time." Steve Hochberg, co-editor of the Elliott Wave Financial Forecast, offered the most bearish scenario of all. He said the market had been sending negative signals to investors for the past several years that have been ignored. "The uptrend of new 52-week highs in the Dow topped out in October 1997," he said. "Since then, less and less stocks have made new highs. In April 1998, the NYSE advance/decline line topped out. In May 1999, the Dow transportation average topped out," all of which are traditional bearish signs. Over the next five to six months, Hochberg said, the Dow could drop as low as the 8200 area. End Copyright 2000 Bridge Information Systems Inc. All rights reserved. The Bridge ID for this story is 01275 (c) Copyright 2000 FWN futuresource.com