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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: schrodingers_cat who wrote (11310)	5/4/2002 11:29:01 PM
From: techanalyst1	Read Replies (2) \| Respond to of 57684

Yes that would look nice, but Wall Street it seems doesn't care about looks any more. We have a recovery in some sectors but it sure doesn't look like that includes tech spending and so the tech heavy naz isn't participating in the stealth rally. New highs look pretty decent... just not in the tech sector and not in the big caps. An interesting tidbit... in March 00, the naz peaked on March 10th, went lower, tried to recover not quite making it back to it's intraday high again on March 24th, but the NDX actually made a secondary high (with bearish divergences in the underlying indicators) on the same dates. It would seem that money was still trying to move into the biggest cap stocks in the index. Now what we have is the NDX breaking to new lows quicker than the total naz. It's not much above it's Sept. low. All that money that was feeling safer in the bigger caps is moving back out. Not sure what that means, but my guess is that people are taking money out of the market and most of it was in the big caps. As long as it comes back in, we should be ok, but if it's coming out and there are no intentions to reinvest it elsewhere, the naz might have trouble sustaining any kind of rally until it becomes more apparent we're getting improving fundamentals or better valuations. TA