Thursday, June 20, 2002
A few comments week of 6/21
The early part of the week fulfilled the "bit more up" and that "taste of dust" is where we are today, the recent Up days having created yet another stranded island of longs.
Even today's close is just *too* technical (within .5 point of the Oct98 lows, yet another echo of markets past). Note too the increasing parity of the NDX and SPX (ie, they are both now in the 1000s and quite close in numerical value, even if the NDX is still by far the more volatile).
As mentioned before, niether the SPX nor the INDU have fully test those lows... not that they must, but again, there is a lack of closure, something left undone, about The Big Picture.
While there is little by way of recent support, I have added the Oct97 and Oct98 lows of 927 and 1063 as horizontal lines. I'll leave it to you to pull up the charts and examine each event on its own. There you will also find the "source" for the Sept gap (1126-1144).
As to the SML-- the bounce off the "green" fork was very wimpy and, again, I am not convinced of the strength of that bounce, so keep a tight reign on your positions. There was quite a bit of buying in the Mid/Small caps this week, that is relative to the Large Caps, but I continue less optimistic that the Small Caps will "save" this market at this juncture.
Labels: market-calls-dated
At last, over the rim
of the waiting earth
the moon lifted with
slow majesty
till it swung clear of the horizon and rode off,
free of moorings
- Kenneth Grahame,
The Wind in the Willows
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