Stock Market Direction by Steve Zito Statistics May 18, 2000 Page

May 18, 2000 close 3538.71. Situation now shows a serious breakdown for the Nasdaq Composite Index.
The Nasdaq Composite has been weak for weeks on fears of inflation and higher interest rates, fears which are well founded. Tuesday's close looked like May 5, when the Nasdaq was over-bought on the short-term charts as noted in my daily commentaries. The week after May 5 had a massive decline in share prices. Today, the Composite dropped like a rock in water, with the exception of Intel. This will be followed by a steep drop next week. The Nasdaq has stayed in its current trading range between 4200 and 3200 for over a month, but is now ready to move below 3200. With corporations finished reporting profits, bearish economic data coming next quarter, and the Justice Dept. hunting for large corporations to break up, the Nasdaq Composite Index is ready to test long-term support at 3138, a level that will not hold.
5-minute Nasdaq chart resistance
5-period moving average 3554
20-period moving average 3572
MACD -12.01/-8.24 negative
RSI 16.78 negative
STOCHASTICS 9.10/10.45% positive, over-sold
15-minute Nasdaq chart resistance
5-period moving average 3561
20-period moving average 3592
MACD -18.67/-15.34 negative
RSI 37.97 neutral
STOCHASTICS 12.15/22.31% negative
30-minute Nasdaq chart resistance
5-period moving average 3571
20-period moving average 3605
MACD -18.87/-10.23 negative
RSI 31.16 neutral
STOCHASTICS 6.12/11.00% negative, extremely over-sold
60-minute Nasdaq chart resistance
5-period moving average 3583
20-period moving average 3615
MACD -4.72/11.37 negative
RSI 31.64 neutral
STOCHASTICS 8.63/17.86% negative, over-sold
Daily Nasdaq chart resistance
5-period moving average 3624
20-period moving average 3720
MACD -128.67/-155.79 positive
RSI 48.39 neutral
STOCHASTICS 43.25/40.34% positive
Weekly Nasdaq chart resistance
5-period moving average 3712
20-period moving average 3942
MACD 48.86/214.28 negative
RSI 43.92 neutral
STOCHASTICS 26.44/35.84% negative
Monthly Nasdaq chart support
5-period moving average 3875
20-period moving average 3138
MACD 612.52/531.13 positive
RSI 77.78 positive
STOCHASTICS 67.12/80.13% negative

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