The Daily Chartist: Keep an Eye Out for Financials Rally

June 1, 2000

The market is still oversold and rallies are still possible, even likely, over the next week or so -- maybe even rallies in the technology stocks. But while all eyes are busy watching those four-letter stocks, some movement is again underfoot on the New York Stock Exchange.

For two out of the past three days, the S&P and Dow Jones Industrial Average have posted losses, yet the advance/decline line has provided us with a positive reading on all three days, not just the one up day. And that improvement is not only in the oil and natural gas stocks; it continues to be in the financial stocks.

The NYSE Financial Index continues to hold its own. It has yet to break through that 550 area, but at the same time it has not given up gains it's made. I continue to believe a crossing of that 550 area would be a big positive for this index. ...