May 15, 2000

While the market should be pretty well paralyzed Monday, waiting for the big news out from the

Fed on Tuesday, Friday's action made it quite obvious how skittish investors still are. Just look at how the

Nasdaq Composite Index

closed right on its low. It was hard to find technology stocks that did not close on their lows so the Nasdaq's action on Friday was a fair representation of most of its components.

However, while the Nasdaq is still about 150 points away from its Wednesday low of 3384, many technology stocks are not faring as well. For example,

Qualcomm

(QCOM) - Get Report

is now just $3 higher than its Thursday low. (This stock went on to a lower low Thursday vs. Wednesday despite the big Nasdaq rally). This says that so far the rallies have had very little momentum and there's been a lot of selling into the rallies.

As long as there is still so much selling going on, it's hard to imagine a real bottom in these stocks. Until we can clean out the sellers, it's likely we will remain in a very difficult market.

Overbought/Oversold Oscillators

For an explanation of these indicators, check out The Chartist's

primer.

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 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

KPMHSM@aol.com.