The Numbers Come Together

  • February 7, 2001
  • Eddie Kwong

Over the
last couple of weeks I’ve been letting you know of the condition that was
arising in the Nasdaq Composite.  I’ve
stated that the .618 retracement from the October 1998 high to the March 2000
low and the .50 retracement from the October 2000 high to the January 2001 low
was
an area of important resistance. This,
along with the internal trendline, has indeed led to a pullback in the Nasdaq. Let’s recap
the history:
 



Looking
forward, the market is at an interesting juncture. But then again–when is market not at an interesting juncture? The pullback takes the Naz to a level where it found support late Nov. A bounce following through from today’s reversal from lows would make sense. But the trend is still down and sentiment (Investor’s Intelligence reported 61% bulls last week – levels near those of 1987) favors the downside.   

 

Till later,

Eddie