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Strategies & Market Trends : Trend Setters and Range Riders -- Ignore unavailable to you. Want to Upgrade?

To: Susan G who wrote (4932)	5/9/2001 10:18:58 PM
From: SusieQ1065	Respond to of 5732

NetBulls-"The price action of the NAZ today, suggests negative momentum will be carried over into Thursday's trading" Trendless and Fearful As the Nasdaq continues to meander aimlessly, traders don't want to be long following a lame earnings report from tech bellwether Cisco or short ahead of Tuesday's Fed meeting. However, even the most bullish of longs paused when Cisco CEO John Chambers described the valley in the US economy as "much deeper than any of us anticipated." He fretted about price wars, tightening margins, the global economy as well as cuts in capital expenditures. Investors looking for a reason to believe better days are just around the corner came away from that conference call empty handed. Fortunately, old-reliable General Electric (GE) came to the rescue, saying things are not so bad and full year profits should come in at the top end of estimates. Although this limited the damage from Cisco, it was not enough to keep GE from posting a 5-cent loss. In an SEC filing, network equipment maker 3Com found a unique way of stating they have no idea what their fourth- quarter will look like, saying that they said they now expect a "wider range of outcomes" over their last forecast on March 21st. At that time, they anticipated revenue of $550 to $600 million. These aforementioned issues helped pressure the tech laden Nasdaq, which closed down a moderate 42.95 points to 2155. The Dow Jones Industrials lost 17.10 points to end the session at 10,866. The price action of the Nasdaq Composite on Wednesday suggests negative momentum will be carried into trading on Thursday. After rallying off of the morning low of 2141 to reach a session high of 2189 at midday, the index faded badly into the close. A daily chart of the Nasdaq Composite shows the index backing off of upward resistance at 2220 and is now approaching critical support at 2100. Absent bullish news capable of reversing the present course, a break here would set up a test of the next level of support at 2000.