Holiday Action

May 24, 2002
Dave Landry

On Friday, the Nasdaq lapped lower and chopped its way
lower for most of the day. It did try to rally late in the day but this failed.
This action has it closing poorly and suggests its downtrend remains intact.

The S&P also sold off to close poorly.

So what do we do? From a purely technical perspective, it
looks like the indices are trying to resume their downtrends. However, being the
lightest volume day of the year, it’s quite possible that there just weren’t any
bids in the market for those looking to square up in front of a long holiday
weekend. So, you can’t ignore the action but I wouldn’t read too much into it.
The market could remain light and choppy early next week as the traders come
straggling back from an extended holiday. Therefore, keep it light until we see
what happens then.

Looking to potential setups, Schering Plough
(
SGP |
Quote |
Chart |
News |
PowerRating),
mentioned recently and in the weak drugs, is now set up as a Trend Pivot
Pullback.Â