March 8, 2000
Procter & Gamble
managed to snatch away the first attempt at
5000. But did it do damage to any of the New Economy stocks? Not that I saw; only
had a bad day, which wasn't even related to the P&G news. And even with VeriSign's big drop, the stock hasn't even broken any uptrend lines. It just seems to be having one giant correction.
With P&G's news, the market rounded up the usual suspects and had yet another shakeout. What is important to watch now is which stocks, if any, are going to hold in this renewed decline. As the market will now be heading toward an oversold reading over the next couple of weeks, this will be the first test to see if the selling is finally done in these Old Economy stocks. I will not guess at the possibility of a bottom, as it still seems unlikely at this point.
Over on the Nasdaq, we just may see another attempt at 5000 this week. It will come prior to reaching a maximum overbought reading later this week, but because we are so much closer to being overbought now, in terms of time, it is unlikely that 5000 will be sustainable on its first run up. The market seems to be saying it needs a rest before it can get through that level and stay there.
New Highs and New Lows
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