Market players continue to buy when stocks are down. However, yesterday's oversold rally was quite anemic, as the advance/decline line barely made it into positive territory.
And it's not just the A/D line that did not perform well. The airlines, which were oversold and reported better-than-expected earnings, did not fare well. There were plenty of sellers into those rallies. Once again, the only buying we see is narrow and concentrated in the technology and biotechnology groups. Since that is not healthy action, I continue to be suspicious of rallies which are so narrowly focused.
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