The Daily Chartist: A Little Follow-Through Would Be Nice

The Chartist says that we're going to need to see some follow-through for this market to shake off its current malaise.
Publish date:

Oct. 21, 1999

I keep asking myself what it's going to take to get the market out of its current malaise. The answer is follow-through. Just a couple of weeks ago, the airlines were taking off, only to fall prey to profit-takers a few days later; now they're back where they started. Thus far, the drugs and financials have not given back their recent gains; however, many of them failed yesterday to trade higher than their Tuesday intraday highs.

Then there's the advance/decline line. A great showing in the morning but as the averages gained strength in the afternoon, it lost its luster, closing almost the same as it closed on Tuesday. For a market to advance in a healthy manner, it must show a broad rally with lots of follow-through. Unfortunately, we're just seeing group rotation.

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We are moderately oversold; therefore, I continue to expect further rally attempts over the next couple of weeks. If this oversold rally cannot manage to produce better statistics, then we will likely come right back down again.

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 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 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 at