June 1, 2000

The market is still oversold and rallies are still possible, even likely, over the next week or so -- maybe even rallies in the technology stocks. But while all eyes are busy watching those four-letter stocks, some movement is again underfoot on the

New York Stock Exchange

.

For two out of the past three days, the

S&P

and

Dow Jones Industrial Average

have posted losses, yet the advance/decline line has provided us with a positive reading on all three days, not just the one up day. And that improvement is not only in the oil and natural gas stocks; it continues to be in the financial stocks.

The

NYSE Financial Index

continues to hold its own. It has yet to break through that 550 area, but at the same time it has not given up gains it's made. I continue to believe a crossing of that 550 area would be a big positive for this index.

One of the stocks in this index is

American Express

(AXP) - Get Report

, which had its own minor breakout yesterday. And with volume, too! Here are two charts of the same stock. The longer-term chart, dating back to January 1998, shows the pattern this stock made in 1998: the big swoop down, the rally to resistance, the churning at resistance eventually led to a breakout and higher prices. Here in 2000, a similar pattern has emerged.

On the shorter-term chart, dating back to last summer, we broke this short-term downtrend line, but more importantly, we surpassed the 52 1/2 level that's provided resistance for nearly four months now. This stock must now contend with those three highs around 56, which should take some work to eat through. But the move through resistance says it's now likely this stock will hold on dips and eventually work its way higher.

Overbought/Oversold Oscillators

For an explanation of these indicators, check out The Chartist's

primer.

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.