A Matter Of Time
The message
over the past week has been that the technology complex simply needs
more time to rebuild and mend the technical damage done from March through May.
Signs of this have included the Nasdaq
Comp’s Friday repenetration of its prior two-week trading range in addition to
moderate decay in a number of growth stocks.
As for the latter, the sagging action
in I Two
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Interactive
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is to be noted, among others.
All of this may seem obvious, yet
conversations I’ve had with a number of people in the past week indicate that
expectations appear to have gotten ahead of themselves.
Yes, this is an intermediate advance.
But, no, it is not like the others
we’ve seen over the past year or more.
And, once again, the reason is that
the extent of the damage done to tech is much more intense than anything
witnessed in recent years.
Technically, the nagging question mark
in the market is the uninspired level of activity, something that, if remedied,
would certainly go a long way toward clearing the air — one way or the other.
This lack of volume is beginning to
manifest itself in the inability of a number of glamours to clear short-term
resistance points and stay above them.
As I’d mentioned Friday, EMC
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Intel
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watching like a hawk.
Nokia
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as a failure has already been exposed…Tuesday, it fell on above average trade
for the fourth day in a row.Â
As for EMC
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for the sixth day.
Nortel
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second time in four days.
Elsewhere among the benchmark set,
Texas Instruments
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Among the names, Tuesday’s hehavior in
Cree
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desirable following the clearing of a short-term high.
Ditto for Analog Devices
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Micrel
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back more than desired.
Triquint Semi’s
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distribution session was just another chink in the chip segment’s armor.
Otherwise, Network Appliance
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continues to base-build constructively.
Redback
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of how the best stocks make themselves tough to buy coming off a market
correction.
Sepracor’s
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steadily dried up as it works on a four-month base.
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