The Daily Chartist: FOMC Meeting Clouds Outlook - TheStreet

The Daily Chartist: FOMC Meeting Clouds Outlook

With that said, the Chartist still believes the market will rally this week. The Nasdaq, though, could be entering a period of underperformance.
Author:
Publish date:

Oct. 4, 1999

With the

Federal Open Market Committee

meeting this week, I submit anything can happen. However, the overbought/oversold oscillators on the

NYSE

and the

Nasdaq

are still very much oversold. Additionally, the number of stocks making new lows on the NYSE continues to contract on down days. This suggests that the market should rally sometime this week.

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The Nasdaq, which has not participated in the recent decline to the same extent that the

Dow Jones Industrial Average

and the

S&P

have, is still trading very close to its highs. Oh sure, it can rally, too, but when the number of stocks making new lows is expanding while a market is near its highs, it's time to be cautious. I believe we are entering a period of time where the Nasdaq will underperform.

New Highs and New Lows

Overbought/Oversold Oscillators

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.