Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Susan G who wrote (16317)	4/23/2002 11:31:42 PM
From: Susan G	Read Replies (1) \| Respond to of 26752

NEARING CLIMAX LOW? By Harry Boxer, The Technical Trader My worst fears were realized yesterday when the NDX gapped down out of a potential beautiful bullish set-up and spent most of the day dropping until near the close when they firmed up a bit. It followed suit this morning and had a nice couple bars up early, but resistance proved futile today and the NDX kept making lower lows for the rest of the session. The S&P 500 and Dow held all day until the final hour when they finally gave up in tandem with the Nasdaq 100 and Composite on the downside. The Nasdaq made new lows for the year, and only a last 5-minute little rally from what appeared to be short-covering lifted the indices off the lows, but only by about 6 ½-7 points on the NDX and by a couple on the S&P 500. The Dow closed down 47, the S&P 500 down around 7, and the Nasdaq near 28 points on the Composite and 100. More importantly, the Sox Index, which has been leading us up and down, dropped a sharp 3 ½ percent today, down nearly 18. Remarkably, the advance-declines were almost dead-even on the NYSE on a rather poor day. Up/down volume was only 7-6 negative there, so I would say only a marginally negative day on New York, but Nasdaq was much worse. Even though there were only 280 more stocks down than up, there were about a billion more shares that traded on the downside today. Volume was heavy, about 1.9 billion and change. Towards the end of the day the indices spiked downward off of a breakdown below the lows and unfortunately they’re now very vulnerable to further price deterioration. On the other hand, we are right near former lows from February and last month, and at a very, very key price support level at around 1100 on the S&P 500. So there’s still the possibility the market could hold in here & put in a bottom, but it certainly hasn’t proven that yet and until it does momentum is on the downside and we could still go lower. Individual price deterioration today on my board was broad, led by Qualcomm which had bad news from Korea, down 2 ¾ on very heavy volume, and Microsoft which dropped 1.60. The other leading losers were Mercury Interactive down 1.80, Nvidia 1.50, Broadcom 1.44, eBay 1.25, and Veritas down another 1 ¾. Very few stocks were up, just fractional gains by OVTI, OSIS and Gemstar. Until they can take out price resistance levels and declining moving averages, we’re still in a declining mode that may yet turn into a more severe climax low at some point soon. But for now the market is extremely vulnerable here to further sharp price declines.