The Daily Chartist: It's Still Ugly Out There

The Chartist points to new lows and suspects that whatever rallies result from overeager buying will meet resistance.
Author:
Publish date:

Oct. 14, 1999

The statistics say it's still ugly out there. And the worst part about it is that the selling is not climactic. In fact, I even heard the folks at

CNBC

telling us last night how so many of the people they talk to were buying into the decline! That tells us where sentiment is, and it is not in the right place for a decent bottom.

The new lows have expanded to a great degree, and that is not a positive. Add to that the fact that neither the

NYSE

nor the

Nasdaq

is oversold yet. I suspect there are itchy fingers out there just waiting to buy so we may rally (heck, we've been down hard two days in a row!) but I continue to believe rallies will meet resistance. I prefer to wait for a real bottom before diving in.

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.