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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (15377)	5/24/2004 10:34:37 PM
From: Return to Sender	Respond to of 95610

NASDAQ NEWS, May 24 By Jody Osborne, Optionetics.com 5/24/2004 7:30:00 PM optionetics.com Tech stocks outperformed the broader market last week and this out performance continued on Monday. Last week, the Nasdaq ($COMPQ) gained 0.41 percent, ending a three week losing streak. This was not the case for the broader market, with both the S&P 500 ($SPX) and the Dow ($INDU) continuing their losing ways. The Naz lead the decline that started back in mid-April, with the index falling through its 200-day moving average on May 6, which it has not been able to recapture. However, the Dow recently fell below 10K even as the Naz is starting to show moderate strength. The SPX continues to hold above its 200-day moving average, but one strong down day would take the index below this key support level. The Philly Semiconductor Index ($SOX) formed a double bottom early last week, which has provided support for the chip sector. Intel (INTC) continues to move higher, albeit at a slow pace, with the daily chart showing higher highs and higher lows. However, volume remains light for Intel and the broader tech sector. Earnings were very strong in the first quarter, but concerns about oil prices and interest rates have kept a lid on higher stock prices. Despite a mild gain last week for the Naz, the Nasdaq Volatility Index ($VXN) fell sharply. The VXN gave up nearly 15 percent to close the week back below its 200-day moving average. On Monday, the VXN fell another half a point to close at 24.33. This is a positive sign for tech stocks; with the VXN looking like it is going to retest its lows near 20. Of course, as the VXN falls, it normally is accompanied by a gain for the Nasdaq. The Nasdaq 100 Trust (QQQ) is sitting just below its 200-day moving average, so it will be interesting to see if this level is broken or if resistance holds. Low volume has made it difficult for analysts to predict future movement and this might continue to be the case until traders feel more at ease about oil prices. This week will also be heavy for economic reports and this data could also have an impact on stock prices. Only time will tell, but the last few weeks, the Naz has started to show early signs of strength. Jody Osborne Senior Staff Writer & Options Strategist Optionetics.com ~ Your Options Education Site