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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: puborectalis who wrote (78904)	6/18/2001 3:59:55 PM
From: Rob S.	Read Replies (2) \| Respond to of 99985

What? The NASDAQ is not nearly as oversold now than during those periods. What are you using? TA? Or staring into the bottom of a pill bottle? The NASDAQ is richly valued compared to those periods. It is not even sold off from a technical standpoint to the "extremely oversold" degree that it saw last year. And it is not nearly sold off from the perspective of market sentiment indicators. The VIX is only mildly bullish - not to extremes seen even in the recent past. The NASDAQ is sold off to a mild degree because many stocks are still extremely highly inflated because their sales and earnings have dropped off a cliff; stocks trading for 2004 earnings expectations can't afford to have disappointments to the degree seen recently. The NASDAQ is short term oversold but it can get a whole heck of a lot worse before an extremely oversold condition from which a snap back is almost certain.