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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (40297)	5/20/2003 7:46:30 AM
From: Techplayer	Read Replies (1) \| Respond to of 57110

As would I...The wafflers over on briefing have gone from avid buy the dippers to looking at a drop in the Nasdaq to between 1350 and 1450 after one day of selling. Updated: 20-May-03 General Commentary It's only natural that after a long, profitable advance, investors would be looking for signs that it's time to take some profits off the table. They got what they were looking for on Monday, as the dollar fell to multi-year lows against the yen and the euro. The sluggish LEI data (+0.1%) only greased the slide. While the scope and breadth of yesterday's retreat were considerable, the decline was insignificant when viewed against the gains over the last couple of months. In other words, there was nothing unusual or alarming about Monday's decline. To the contrary, by backing up a bit over the next several days the market will be removing some of the froth off the rally -- and that's very healthy for the intermediate- to long-term. Considering that the indices have enjoyed a very strong advance over the past several weeks, traders should not be surprised to see some follow through selling. However, if Briefing.com is correct and we actually have transitioned from bear to bull market, then buyers won't wait long to jump back on board. Initial support is in the 1450-1420 area. Expect this floor to hold on its first test at least. Key at that point will be to see if volume expands or contracts on the subsequent rally. If the former, then current setback will be short and shallow. If not, sellers will get at least one more shot at taking the indices down more significantly. Pivotal long-term support is at 1353. (Separately, the tone from Cramer is defeatist as well...)