The Daily Chartist: Beyond the Dow and the Nasdaq

The Chartist says that the Russell 2000 is the index to watch.
Author:
Publish date:

Sept. 8, 1999

I certainly don't like it when a market trades up and then closes lower on the day. That is not good action. It seems as though the buyers stepped away and stocks began to fall of their own weight. And with

Alan Greenspan

, who has been the Price of Darkness of late, speaking on Wednesday, investors are nervous to commit new money to this market.

There was some good news in Tuesday's action, however. You can certainly see for yourself the increase in the stocks at new highs. Just a few short weeks ago, the advance/decline line would have been much worse than yesterday's performance.

More importantly, I didn't notice anyone making a fuss over the

Russell 2000's

action. It was not only up on the day, but it also closed on its high. I find this important because it's a small-cap, broad average. It has now surpassed, if only by a hair, its Aug. 25 high. That is something that neither the

S&P

, the

Dow

nor the

Nasdaq

has managed. And I think that's worth watching.

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 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.