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The Daily Chartist: A Sentiment Shift

Helene Meisler says we've undergone big changes since last month.

Aug. 23, 1999

Tomorrow's the big day. Seems now everyone's convinced the


will raise rates. And today the

International Herald Tribune

ran a front-page article on

The Next U.S. Recession (this was originally printed in

The New York Times

). These are all signs that sentiment has shifted. Sure, sentiment has not tipped the scales toward too much bearishness yet, but it is certainly a big change from one month ago.

As for those improving statistics, I must admit that the increase in the number of stocks at new highs on Friday was a change from what we've been seeing lately. The

S&P 500

is 8 points lower than it was on Tuesday, yet we actually saw two more stocks make new highs on Friday than we did on Tuesday. Now that may be minor, but since I made such a big deal over those sorts of failures in July, I cannot possible ignore this type of improvement now.

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