June 15, 2000
The difference between the action on up days and down days on the
New York Stock Exchange
continues to show the underlying improvement on down days and the struggle to get going on the up days. Wednesday I
pointed out the difference between Tuesday's big plus-23 day on the
S&P and last Friday's down-5 day by showing that both days had a fairly similar advance/decline line. Note that the breadth of the market does quite well on down days. While breadth does OK on up days (Wednesday's flat performance in the S&P produced a net positive of 433 issues on the NYSE), its performance on those up days should be significantly better than on the down days, and it just isn't.
There was also a clear consensus last week that if the
retail sales number and the
CPI came in weaker than expected or in line with expectations, the market would rally, but it hasn't. The main reason for this is that the market continues to be overbought, providing very little momentum on the upside. The result is that down days improve the market and up days run into
For now, the trading range continues.
For an explanation of these indicators, check out The Chartist's
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