June 22, 2000. The Nasdaq Composite Index closed at 3936.84.
Nasdaq's three-week surge ended with a thud as key components Intel, Cisco, and Oracle rolled over and dropped an average of 4.5%. Each one had been over-bought according to my stochastic readings on Tuesday. The Nasdaq remains overbought on the daily charts, even with today's nasty 3% plunge. With the exception of MCI Worldcom, the Nasdaq leaders all show signs of DISTRIBUTION. They have lagged the Composite Index for a month, despite what the brokerage house gurus are saying. Nasdaq never bottomed in April, and eventually will head for 2500 before October. The Nasdaq has managed to stay within its three month 3200-4200 trading range after breaking below it twice in the last two months, but fundamentals do not support any sustained upward move. On the technical side, the Index is very over-bought and set for another 300 points on the downside, until the next Federal Reserve meeting. On the fundamental side, bearish economic data on the TRADE IMBALANCE and further sustained gains in oil and gasoline prices lie ahead, not to mention the Justice break-up team is targeting large-cap Nasdaq-listed corporations, To top it off, Congress is now mulling a windfall profits tax on any industry that has large profits.

5-minute Nasdaq chart resistance
5-period moving average 3953
20-period moving average 3980
MACD -19.75/-16.23 negative
RSI 21.46 negative
STOCHASTICS 8.56/8.20% positive
15-minute Nasdaq chart resistance
5-period moving average 3967
20-period moving average 4005
MACD -16.82/-6.86 negative
RSI 31.57 neutral
STOCHASTICS 8.37/19.97% negative
30-minute Nasdaq chart resistance
5-period moving average 3981
20-period moving average 4010
MACD -3.91/8.38 negative
RSI 39.60 neutral
STOCHASTICS 11.37/23.76% negative
60-minute Nasdaq chart resistance
5-period moving average 3987
20-period moving average 3996
MACD 18.42/34.02 negative
RSI 47.30 neutral
STOCHASTICS 27.79/48.92% negative
Daily Nasdaq chart support
5-period moving average 3938
20-period moving average 3810
MACD 92.57/57.89 positive
RSI 72.00 positive
STOCHASTICS 83.91/89.20% negative
Weekly Nasdaq chart support
5-period moving average 3815
20-period moving average 3866
MACD -6.36/56.90 negative
RSI 37.22 neutral
STOCHASTICS 41.86/33.85% positive
Monthly Nasdaq chart support
5-period moving average 3842
20-period moving average 3202
MACD 582.39/538.26 positive
RSI 73.29 positive
STOCHASTICS 61.31/73.20% negative

Copyright Notice, all pages Copyright©2000 and are made available as a service to the global Internet community. Pages may not be reproduced or sold in any medium without explicit, written permission from Steve Zito.

Back Home Index Statistics June 20 Page