The Daily Chartist: Going Up and Coming Down

We're still in an oversold rally, and there's little follow-through in most stocks.
Author:
Publish date:

July 29

This rally continues to show us poor statistics. In fact, the best thing we can say about the market is that it is oversold.

As the market rallies, the number of stocks making new lows keeps rising. This shows us there continues to be much selling and very little buying into this oversold rally. There is very little follow-through in most stocks.

What goes down one day rallies the very next day (

Yahoo!

(YHOO)

, for example). And what goes up one day comes down the next (

American Express

(AXP) - Get Report

comes to mind).

That is not bullish action.

However, the market is sitting in oversold territory and will continue to try the upside over the next week or so.

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.