Nothing Much Has Changed

August 3, 2001
Dave Landry

On Friday, the Nasdaq lapped lower and sold off. It then
drifted sideways all day (snore) before bouncing going into the close.

The recent highs, just above the 50-day moving average
remain possible resistance to the upside. The recent lows, circa 1950 remain a
possible target to the downside.

The S&P also sold off early
and then drifted for most of the day. It too bounced going into the close.

So what do we do? In spite of a late-day bounce which the
bulls seemed all excited about, nothing much has changed. The market, once
again, failed to get through a resistance level. This, combined with market
timing sell signals, is keeping me bearish short-term. Look to play the short
side, but keep it light until we get out of these summer doldrums.

Looking to potential setups,Â Advanced Micro Devices
(
AMD |
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PowerRating),
mentioned Thursday, still looks vulnerable.