Oct. 11, 1999
Admittedly, the raw statistics from Friday's big
rally look poor: The
advance/decline line never even made it to positive territory. And the
made a new closing high -- by just pennies -- but still had fewer than one-third the number of stocks making new highs than it had on its first trip to this high back in July.
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However, many of the momentum indicators that halted their slides and reversed their directions two weeks ago are not done yet. These indicators (all discussed in my
column of Friday, Oct. 1) were successful in timing the rally, and I believe we should wait until they tell us the rally is done.
Unless these raw data statistics improve markedly over the next few trading sessions, the momentum indicators, which are made up of the raw data, will begin to falter within a week or so.
New Highs and New Lows
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