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To: pbull who wrote (2355)	6/23/2001 2:40:50 PM
From: pbull	Read Replies (1) \| Respond to of 13815

From Briefing: So far, so good... After staging a dramatic rally off its April low, the Nasdaq endured a classic three-step correction that stopped right at a key retracement level (in this case, 1974)... The subsequent bounce over the past three days has been relatively strong, suggesting that the sector is well positioned to resume its advance in the days and weeks to come... Don't look for anything major right away, as the sector still needs to slug its way through the remaining two weeks of warnings season, but Briefing.com thought it was worth noting that despite the rash of corporate confessions the technical tone remains constructive. On the flip side, the sector's fundamentals generally stink, and long-term it is the fundamentals which usually win out... Consequently, many pundits (not to mention Briefing.com clients) expect the Nasdaq to test the April low, if not fall further... While Briefing.com concedes that this is possible, we maintain that such a scenario remains unlikely... The lousy fundamentals are no surprise -- if they were the Nasdaq would already be at new lows given that the sector is on pace to deliver weaker earnings in Q2 than in Q1... Though earnings are apt to remain soft for another quarter, possibly two, we are now at a point in time when enough investors are looking beyond the abyss to the eventual recovery that new lows are unlikely... As such, positive surprises, though fewer in number, will carry more weight in setting direction than additional warnings. Should the Nasdaq hold above retracement support over the next several days, and follow that up with a break above initial resistance in the 2077-2084 area, the bellwether tech index would be well positioned for a near-term run at 2300+... Given all the bears still on the prowl, such a move would certainly trigger another wave of short-covering... And if the index were to set a new recovery high, more and more sidelined skeptics would feel compelled to get back into the game. While we're not looking for another mania, Briefing.com holding to view that a return to 2500 is more likely over the next few months than a retest of 1600