To: SusieQ1065 who wrote (10462 ) 8/11/2001 12:58:50 PM From: keithcray Read Replies (2) | Respond to Technicals certainly support the bounce scenario, as short-term momentum indicators are oversold and put-call ratio is high... Also note that Nasdaq/NYSE volume indicator, a oft-used sentiment tool, showing lowest reading since 1998... With sentiment in tech sector so low, this contrary indicator suggests that techs are poised for a nice recovery rally. Sector was taken to the breaking point last week, but key supports held ... The bulls will view sector's resilience as indication that bottom is in place and that market just waiting for more compelling evidence of an economic/earnings turnaround to stage a breakout rally... Bears look at repeated failures to the upside as evidence that it's just a matter of time before we break below the bottom of the May-Aug range and retest April lows.Briefing.com remains a member of the bullish camp, though, as we noted late last week, we are growing less confident in our intermediate-term bullish outlook... Especially disturbing was last week's sloppy action in the larger-cap leadership names such as Sun (SUNW), Oracle (ORCL), IBM (IBM), Siebel Systems (SEBL), Veritas (VRTS), Cisco (CSCO), Brocade (BRCD, Nokia (NOK) and EMC (EMC)... Weakness in these stocks suggests that institutional investors walked away from sector... Without participation from the big boys will be tough for techs to sustain any upward momentum. However, with expectations already low, if two or more of these companies offer any encouragement we could see a nice short-term run.
