The Daily Chartist

March 25

We seem to have gotten extreme pessimism yesterday ... only not in the stock market as a whole. Instead, bearishness was so prevalent in the technology sector that the tech stocks held and rallied. The next test for these stocks will be to see if they can beat out last week's highs. For now, they are neutral; if they fail to beat out the highs made just last week, they will go back on the negative list.

On a positive note, we saw our first positive divergence on Wednesday: fewer new lows. It's been quite some time since that number retreated during a decline. However, the momentum indicators have not yet shifted back to the upside, so until then, I remain cautious.

New Highs and New Lows

Overbought/Oversold Oscillator

Cumulative Advance/Decline Line

Helene Meisler, based in Singapore, writes a technical analysis column on the U.S. equity markets on Tuesdays and Fridays, and updates her charts daily on TheStreet.com. Meisler trained at several Wall Street firms, including Goldman Sachs and Cowen, and has worked with the equity trading department at Cargill. At time of publication, she held no positions in the stocks 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 at

KPMHSM@aol.com.