The short-term technicals have improved since Wednesday's lows, with both the Nasdaq Composite and Philadelphia Semiconductor Index (SOX) above their 200-day simple moving averages at 2073 and 433.90, respectively. This is not a signal for a bottom, as there remains the risk of a bear market into at least mid-2006. However, the volatility can be traded with a favorable success ratio. The weekly chart profiles of the Nasdaq and SOX will remain negative if they close the week below their five-week modified moving averages at 2119 and 461.60, respectively. If they close October below their five-month MMAs of 2091 and 446.45, it would shift their monthly chart profiles to negative. Technology is 14.2% undervalued according to my models, making it the cheapest sector in the market. I will be focusing on leadership when I detect a bottom for the Nasdaq and SOX, or if my bear-market call turns out to be wrong. eBay, Juniper Networks and Verisign, which have reasonably solid profiles in my models, reported earnings Wednesday after the closing bell. The market reacted negatively to eBay's ( EBAY) 2006 guidance, sending its shares as low as $39.53 Thursday. I rate eBay to be 27.7% undervalued, with fair value at $54.98. Its weekly chart profile will go negative on a close below its five-week MMA of $39.53, indicating risk to my monthly value level of $36.47. This is where long-term buyers should emerge. Juniper Networks ( JNPR) beat consensus estimates and raised guidance. Shares traded as high as $23.97 Thursday morning, up 10.8%. The stock is 44.0% undervalued, with fair value at $42.10. Juniper's weekly chart profile shifts to positive on a close this week above its five-week MMA at $22.73. My monthly pivot at $21.83 is now the value level, and quarterly risky levels remain at $32.76 and $33.33.