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

To: FJB who wrote (40747)	10/9/2008 8:56:08 PM
From: Return to Sender	2 Recommendations Respond to of 95587

Technical Analysis: Deeply Oversold The stock market is as oversold as any in U.S. history, but it still needs buyers. internetnews.com October 9, 2008 By Paul Shread: More stories by this author: This is one of the most deeply oversold markets in U.S. history (more on that tomorrow night), but so far nothing has been able to halt the decline for long. It will continue until either sellers are washed out or until stocks reach valuations compelling enough to encourage bargain hunting. We may be closing in on such a support zone. A look at 11-year charts of the major indexes (see below) show that on the Dow and S&P, we are entering a support zone that has marked a number of major lows dating back to the 2000-2002 bear market and the 1997-1998 emerging markets crisis. On the Dow, that support zone is 7200-8000. On the S&P, it's 768-855. And on the Nasdaq, it starts at 1521. Those are levels that traders have long been comfortable with, and some support is likely there. But uncertainty will likely continue for some time, particularly with credit conditions worsening despite historic interventions by governments around the world. To the upside, 9043 and 9500-9700 are resistance on the Dow, 954, 1000 and 1060 on the S&P, and 1750-1800 on the Nasdaq. New Levels of Support and Resistance have been added to these charts as the major indices blow through support levels! RtS Next Article: Big Blue Can't Stop Stock Freefall Even better than expected results from IBM couldn't stop the global stock market panic on Thursday. internetnews.com October 9, 2008 By Paul Shread: More stories by this author: IBM's (NYSE: IBM) better than expected results were good for an early rally on Thursday, but stocks fell off a cliff in the final two hours of trading, sending the Dow to its worst one-day loss since the crash of 1987. Concern about GM's (NYSE: GM) solvency was the latest culprit for the historic sell-off that has sliced a quarter off the U.S. stock market capitalization in just three weeks, sending the major indexes to five-year lows. The sell-off also came as the SEC lifted temporary short-selling restrictions. Even IBM (NYSE: IBM) ended the day 1.7% lower, more than 6% off its high for the day. Friday could be another eventful day, with GE's (NYSE: GE) earnings report and a Lehman Brothers credit default swap auction likely to take center stage. It is the third time in recent days that the government has unwound the complex debt protection instruments, following Fannie Mae, Freddie Mac and Washington Mutual. The auction is expected to be complete by 2 p.m. Eastern. Not all stocks finished lower, however. Applied Materials (NASDAQ: AMAT), Research In Motion (NASDAQ: RIMM) and Flextronics (NASDAQ: FLEX) were the only winners out of the 25 most actively traded NASDAQ stocks. Cisco (NASDAQ: CSCO) led the tech sector lower with a 6% loss after RBC Capital lowered estimates on the company on concern that bookings may be slowing. Amazon.com (NASDAQ: AMZN) and Yahoo (NASDAQ: YHOO) lost 8% each on growing slowdown fears. Micron (NYSE: MU) was unchanged on a restructuring plan. The Nasdaq lost 95 to 1645, the S&P fell 75 to 909, and the Dow plunged 678 to 8579. Volume declined to 8.37 billion shares on the NYSE, and 3.02 billion on the Nasdaq. Decliners led by a 32-3 margin on the NYSE, and 25-4 on the Nasdaq. Downside volume was 95% on the NYSE, and 92% on the Nasdaq. New highs-new lows were 6-1804 on the NYSE, and 7-1058 on the Nasdaq.