adopted a bias toward tightening and the market just stood there and watched. Oh sure, it had a big whoosh down followed by a slow climb back to unchanged. It's likely we can continue to expect more of this in the coming weeks.
The oscillator has now moved back toward a moderately oversold condition. It is not prepared for a huge, healthy rally from this oversold level. All it says is that it's possible we can rally a bit from here before we come down again to a maximum oversold level. Remember, markets do not go up in a straight line, nor do they come down in one fell swoop.
With the other indicators having rolled over rather convincingly (see Tuesday's
column), I continue to remain cautious on the market.
New Highs and New Lows
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