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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (132531)	4/16/2001 10:38:06 PM
From: puborectalis	Respond to of 186894

Short Covering Could Ignite Markets By Yola Edwards (yedwards@stockhouse.com) Monday, April 16 Markets pulled back marginally during Monday's trading session as investors awaited earnings news. But a rally could resume within the next few sessions. If a rally does occur, the shorts might run for cover and add fuel to the fire. A recent Stockhouse article suggested the Dow Jones Industrial Index [$INDU] would put in a temporary bottom and rally during the week of April 9. The Dow rallied 335.85 points, or 3.4% on the holiday-shortened week. Although technical indicators suggest the Dow is overbought, it could rally higher from Thursday's close of 10,126.94 if it can advance above Wednesday's high of 10,173.79. The envelope bands suggest a new target level of approximately 10,600. Another StockHouse feature suggests that 10,300 may pose as the resistance level. The market may pause briefly at this level, but if short covering becomes a factor, the market will easily vault through that temporary ceiling. The Standard and Poor's 100 Index [$OEX], a broader measure of the market, has also traced out the bullish technical "W" formation. Another Stockhouse article in March suggested that the S&P 100 could head down to 553 to retest the March lows of 548.16. The Index stopped at 554.47, successfully testing the critical level. Closing Monday at 605.99, the S&P 100 could be poised to advance to the upper envelope band target level at 632 during the next month. However, the Bollinger bands and the measurement of the "W" formation suggest even higher levels ahead. The S&P 100 is trading above the positive trending 10- and 30-day moving averages, but like the Dow Jones Industrial Index, the stochastic levels indicate an extremely overbought situation. With the amount of pent-up demand and cash sitting on the sidelines, however, any positive news could ignite the market, keeping them in overbought territory for the next week or two. Heavyweights Intel [INTC] and Texas Instruments [TXN] are among the companies scheduled to report earnings on Tuesday. If these firms manage meet analysts' lowered expectations and provide a hint of positive guidance, it could be the catalysts for renewed market interest. With the recent market decline, investors have undoubtedly put a shopping list together and may wish to take advantage of opportunities before the current stock sale ends. Investors may wish to review the Technical Stock Watch List for possible opportunities or update their research in selected technology holdings. The list charts potential trends for technology stocks in six technology groups. Thirty-four stocks are assessed on a technical basis and are updated daily.