The Daily Chartist: Market Freight Trains Still on Opposite Tracks

But on the moderately oversold Nasdaq, Microsoft's rather flat line may signal a coming rally.
Author:
Publish date:

Feb. 24, 2000

Here we go again. The market that is more oversold continues to sell off, and the one that is only moderately oversold rallies. I suppose the freight trains continue to move in their respective directions.

The

NYSE

remains oversold, and while there was a moderate pickup in new lows, it was certainly not awful. However, seems like these days, the only ones who want to buy those stocks are the companies themselves.

Over on the

Nasdaq

, we are now moderately oversold (the oscillator did not even tick up in yesterday's big move, that's how narrow the rise was). It was the sort of rally where those stocks that hadn't moved in two months got a big boost.

As for the ones that are down, I will reiterate: The ones I find interesting continue to be

Akamai

(AKAM) - Get Report

,

Yahoo!

(YHOO)

and

Microsoft

(MSFT) - Get Report

. As a matter of fact, there is a slight similarity in the charts of Microsoft today and of

America Online

(AOL)

before yesterday's move. There is a rather flat uptrend line we can draw on the AOL chart connecting those twin lows last fall, which we never quite got to before rallying yesterday, and on the Microsoft chart, a rather flat line can be drawn in going all the way back one year. That line comes in a few bucks lower, making me believe this stock is due for a rally very soon.

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 was long Microsoft and America Online, 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.