The Daily Chartist: Nasdaq Plays a Little Catch-Up

If this trend of better breadth continues, The Chartist thinks this correction is likely to be short-lived.
Author:
Publish date:

Dec. 1, 1999

Let's begin with the premise that the

NYSE

is about a week or so ahead of the

Nasdaq

. I demonstrated this in the overbought/oversold indicators

yesterday.

Many of the NYSE stocks halted their rise about a week or so earlier than the Nasdaq stocks did. Therefore, the NYSE stocks are well into their corrections. The Nasdaq was simply playing catch-up yesterday.

We saw the financials hold their ground yesterday along with the bonds, which in turn helped the breadth of the market. Should we see this trend of better breadth continue, it is not unreasonable to expect this correction to be short-lived as it will rein in the excesses and provide a much-needed rest.

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.