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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Tunica Albuginea who wrote (19084)	5/28/1999 6:19:00 AM
From: Vendit™	Read Replies (1) \| Respond to of 41369

From a newsletter I subscribe to: Once again, the bond market put downside pressure on stocks, as yield on the 30-year Treasury bond backed up following the revised GDP report, which showed the economy grew at 4.1% during the first quarter. After today's 235-point decline, Dow closed right at its 50-day moving average. This area is very important because Dow doesn't have any solid support until 10,000. Short-term technical indicators are oversold, which may limit any further decline from here. However, technical damage has been done, which would take some time to overcome. Dow is currently boxed in between its 25-and-50-day moving averages, which are its current trading ranges and Dow could move up towards its 25-day moving average to test overhead resistance. One negative aspect with Dow is the fact that many of its members are cyclical and investors have been bailing out of that group ever since long bond yield rose above 5.90%. As long as rates stay above 5.75% or higher, cyclical stocks may not be the place to be. Technology stocks had a relatively better day today, as NASDAQ lost just 8.03 points. Today's sell-off was primarily confined to cyclical and industrial stocks, as investors rotated back to some of the tech issues. Intel, Dell, Microsoft, Oracle and Applied Materials acted very well, which prevented NASDAQ from declining further, but Internet stocks gave back much of yesterday's solid gain. Those stocks are in the process of forming a base from which a technical rally could be launched. As for NASDAQ, technical indicators are oversold and a rebound might be just round the corner.