March 13, 2000
The market is overbought and will be maximum overbought by the end of trading Monday, March 13. This is most evident on the
, as it was unable to maintain its lofty levels on Friday.
I expect this will be another rest stop along the way. Not only is this the week prior to a meeting of the
Federal Open Market Committee
, but we also have the much-watched Consumer Price Index and Producer Price Index out late this week. These upcoming events should keep a lid on the market for the week.
In addition to these upcoming market events, the Nasdaq oscillator has made a lower high, which tells me there is some more work to be done before the Nasdaq can move through 5000 with ease and sustainability. I think the index could easily do 4700, but because there are many buyers waiting to jump on board, the level is not as important as relieving the overbought condition. In fact, the Nasdaq could relieve its overbought condition as early as March 20, the day before the FOMC meeting.
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