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Strategies & Market Trends : MP - Market Pulse -- Ignore unavailable to you. Want to Upgrade?

To: John Madarasz who wrote (197)	6/27/2001 11:40:01 PM
From: KymarFye	Respond to of 1328

I wonder if it's only the approaching quarter end providing some last props to the techs - easier to supply amidst such light volume, but unlikely to hold for very long. If and when the market turns down, a complete withdrawal of support/race to the exits would not surprise me. That the Nasdaq would put in a doji (rather a hanging man), on the day of the Fed session, and on the sixth day of its muted snapback/uptrend, hardly bespeaks broad interest in four-letter stocks - not that the other indices look a whole lot better. Today's session topped out at clearly marked resistance (2084), and any possible further move upward would still have numerous obstacles, including the bottom of the original breakdown gap, ca. 2100, the top of the gap at 2121, and the broken trendline (aka "neckline") currently at around 2176 (and rising). The 20 MA is at 2108 today, the 50 at around 2136 (they crossed into bear territory on 6/22). I'd still be inclined to consider such moves (unlikely but hardly impossible, of course) to be fakeouts until and unless the "right shoulder" at 2264 was passed. The COMPX and NDX charts tell similar stories - similar to each other as well as to those in the charts you've supplied. Notice how the rally top on the NDX came precisely at the low of the 1/03 rally (the big surprise party). home.pacbell.net home.pacbell.net One conservative way to play this situation, if you swing to the short side, would be to await movement below today's low, possibly sacrificing the most favorable entries for ones that appear more secure. Those highly confident in the bear case should already have entered or begun entering short positions. For me, since I trade intraday almost exclusively, the purpose of the exercise is partly intellectual, and otherwise to establish biases and trigger points for possible multi-day positions.