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Technology Stocks : Veeco Instruments-Who? -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (1465)	8/28/1998 7:48:00 PM
From: Stitch	Read Replies (1) \| Respond to of 3069

Zeev, Maybe you will take heart in this from The Walker Newsletter: Best, Stitch reprinted for personal use only: On Friday the market had its lowest close of this correction. In fact, the DJIA close of 8425 was its lowest close since 2/25/98. The SP500 close of 1062.75 was its lowest close since 3/9/98. The DJIA is now down 10.1% from its high less than a month ago. The SP500 is down 10.7%. And those large cap indexes are quite a bit healthier than the broad market. The Russell 2000 is down 18.0% from its highs and trading in the same range as it was in July 1997! The NASDAQ Composite is down 11.7% from its highs. And don't forget about those beleaguered Dow Transports, down 17.1% since July 14th. All in all, not a pretty picture. However, there might be some light at the end of the tunnel. You will recall that in our last issue we had very little good to say about the market. The market internals were all confirming the decline, and even some pretty extreme oversold conditions were not able to generate any buying enthusiasm. Well, we are starting to see some bullish divergences in the market internals. These are the same type of divergences we saw at the market bottom on 6/15, and when combined with the still oversold conditions of the market, they have us looking for a rally soon. However, we will consider this a counter trend (or bear market) rally. Well, we have covered quite a bit of ground here, so let's summarize. The market has been very weak, but there are some positives. We are starting to see some internals divergences, the market is oversold, and we have some major support levels below the market (1054 on the SP500, 8300 on the DJIA). If those levels do not hold we expect a quick trip to 8170 before the rally starts. We will consider the rally a counter trend (or bear market) rally. Bear market rallies tend to be very sharp and very powerful, but we expect this one to fail, leading to another series of selloffs.