And if the timing falls into place, all of this could be happening sometime during that second to third week of April, right in the middle of earnings warnings and earnings reporting, just as the 30-day moving average of the advance-decline line finally gets oversold. (See Monday's column, for more detail.)
Maybe that's just too pat a scenario, or some folks might say I am imagining things. But I've often found it to be the case that when we get a head-and-shoulders pattern in one of the major averages, everyone "prepares" for the pattern and thus that pattern rarely comes to fruition. Most often it comes very close to working and then reverses course at the last second.
Overbought/Oversold Oscillators
For more explanation of these indicators, check out The Chartist's primer.
P.S. Will you be there when Cramer makes his next move?
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The Chartist Market's Oversold, Let's Talk Financials 3/23/2005 9:13 AM EST An oversold market that fails to rally is a weak oversold market. Plus, it's time to revisit the Bank Index now that it broke a two-year uptrend.
Helene Meisler writes a technical analysis column on the U.S. equity markets and updates her charts daily. Meisler trained at several Wall Street firms, including Goldman Sachs and SG Cowen, and has worked with the equity trading department at Cargill. At time of publication, she held no positions in any securities mentioned in this column, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. She appreciates your feedback and invites you to send it to hmeisler@thestreet.com.
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