Down, Up, Flat

September 13, 2000
Dave Baker

Let’s get a feel for the intraday action in the
markets, the Nasdaq futures in particular.

When pondering over the future direction of the market, it’s
always important to take a look at some of the bellwethers. Sun
Microsystems
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PowerRating), a market leader,Â is showing near-term weakness.
It closed near two converging trendlines of Tuesday. Hopefully for the bulls,
we will see a bounce off these lines before the day’s end.

Akamai
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PowerRating) has
been consolidating nears its recent lows for several weeks. It closed on Tuesday
near the low of the range. We will set our alerts near 60 as we watch for a
breakdown.Â Conservative traders should watch for a closing move below the
low of the range, followed by another move the following day. Should it
collapse, watch for support near the April 14 low, as it may bounce at this
point. The strong volume coinciding with Tuesday’s price action may be
suggestive. As always, let price action be your guide. Some traders may prefer
to focus on trading the stock on a bounce off the low of the trading range,
should it occur.

Ivax
(
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PowerRating), in the
biotechs, has traced out a low-level ascending triangle. A positive aspect of
the triangle is the fact that the top side is above the resistance area formed
by the break of August support. As it quickly approaches its apex, and volume
declines, watch for a breakout. Set your alerts above Tuesday’s intraday
high.Â