May 17, 2000

The more we rally and sell off, the more I feel like this market is on a treadmill: It's doing a lot of work but not making forward progress. But that's how it should be if the market is going to form a bottom.

Many stocks are still caught between the support they found at the April lows and the resistance they left behind from the March highs. This becomes a tug-of-war between

support and

resistance that will have very few winners. We call this a trading range, and right now it still has an upward bias.

The rally after the

Federal Open Market Committee

announcement was not great, but we shouldn't expect greatness from this market. At least volume improved yesterday, the first time that's happened on an up day in a while. While we may see some fits and starts over the next few days, the markets (both the

Nasdaq Composite Index

and the

NYSE

) are still oversold enough to keep the upside going for about another week.

Overbought/Oversold Oscillators

For an explanation of these indicators, check out The Chartist's

primer.

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.