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 : Technology Stocks & Market Talk With Don Wolanchuk -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (14889)	4/17/2004 3:01:36 AM
From: Runomo™	Read Replies (2) \| Respond to of 207045

If someone had told me on March 5th that the 1156 SPX would close down five of the next six weeks with the NYSE mcosi falling below the 2004 and 2003 lows and the SPX will still be within a couple of percents from 1156, I would have said that he or she was simply nuts!...... but that's exactly what happened last week as it became clear by Tuesday that a vicious internal correction was taking hold. The open question on Tuesday was will this correction finally take price down with it or is it yet another internal correction with a positive price divergence like the one we had from 6/03 to 8/03 which took the NYSE summation from extreme overbot back close to it's zero line: stockcharts.com[w,a]dellynay[dd][pa!f][iUp14,3,3]&pref=G stockcharts.com The first chart shows the recent mcosi test of the August 03 lows with the oversold stochastics. The second chart with the summation now also close to the zero line has corrected it's overbot condition in an almost similar way to last year's correction. Note the 10% trend going beyond -100 in both instances while price refusing to follow thru.... Action wise, the SPX fought back on Wednesday and Thursday at the 50% retrace of the rally from the March lows and closed well off the lows of the day putting back to back hammers. Friday saw a modest up day despite the tech wreck and managed to close a tad above it's 50 day sma. Vix on the other hand failed a test of it's 200 day sma from below on Tuesday and Wednesday and fell hard the rest of the week retracing more than 89% of it's March spike rally. Da Naz and da sox stunk da joint dis week but they will not be left behind...gotta catch some ZZZ...good weekend to all, Mo