March 22, 2000

The rally in many stocks seems to be banging up against some serious resistance. Just look at the chart of the

Dow Jones Industrial Average

, sitting here just below 11,000, which is pretty strong resistance. I also suspect 1500 will prove to be one of those round-number resistance levels for the

S&P

. And with

Micron's

(MU) - Get Report

huge

disappointment after the bell, we could see some downside pressure on the market. However, the real message is that the improvement on the

NYSE

TheStreet Recommends

continues, and downside action will help these charts eat through that resistance. And with the NYSE still oversold, these dips should be bought.

As far as sentiment goes, where are the bulls? I keep hearing that you should take profits in these stocks. Even worse, the S&P 500 made a new record high Tuesday, and it was ignored! The folks at

CNBC

do all they can when the

Nasdaq

makes a new high, even drawing a circle around the number with the word "record" highlighted. But the S&P hit a new high yesterday, and it wasn't even mentioned, let alone highlighted. (To be fair,

CNN's

"Moneyline" also ignored it.) That doesn't sound like folks are embracing this rally in a big way. So now we've got another positive. Sentiment, a contrary indicator, is not yet bullish enough.

Overbought/Oversold Oscillators

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.