Southbound

September 15, 2000
Dave Baker

The S&P futures have been trending south all day. They finally broke
down. But, with triple witching today, anything could happen. I do not expec
that much activity, as many people have already unwound.Â

Commerce One
(
CMRC |
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PowerRating)
has been choppy along with the rest of the B2Bs. As a leader in its group, it’s
always a good one to watch. It’s range has been tightening for the last few
days. Near-term its showing a sort of triangle pattern. Watch for a breakout as
it nears the apex.Â There is a key pivot point at 70, as it was the last
major high since this most recent run off the lows. Look for a breakout or
breakdown relatieve to 70, in which case it will acti as either support or
resistance.

On the consolidation block we see Power-One
(
PWER |
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Chart |
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PowerRating). This
somewhat big name actually trades a reasonably light volume. Set your alerts
near 90 and 78 1/2 as we watch for a move outside of the trading range. If it
breaks to the upside, watch for a volume-backed move. There is no overhead
resistance. On the downside, there is some support near 77 and 73. Despite the
light volume in this issue, the spread remains tight.