Friday's action was not particularly inspiring. Sure tech bounced, but on less volume than it fell on. In addition, the
may have been higher on the day, but the advance/decline line suffered terribly. This does not bode well for the market.
New York Finance Index
just gave way to the downside on Friday. It is this sloppy action which causes me to continue to be cautious on this market. When stocks are oversold and sitting at support (as many of them were early last week) and rally rather lethargically, only to fall and get more oversold, there is a message in that.
When oversold groups get more oversold instead of rallying, it is easy to see how vulnerable this market really is.
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 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