June 28, 2000. The Nasdaq Composite Index closed at 3940.34.
Nasdaq's late May/early June surge has not resumed in the past week, as key components Intel, Microsoft, and Cisco continued to drop an average of 1.3%. Each one had been over-bought according to stochastic readings June 21. The Nasdaq Index remains slightly overbought on daily charts. With the exception of MCI Worldcom, the Nasdaq leaders all show signs of DISTRIBUTION. They have lagged the Composite Index for five weeks. Nasdaq never bottomed in April, and eventually will head lower in August, led south by Cisco and Intel. The Nasdaq has barely 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. Since fundamentals have meant little in valuation of Nasdaq stocks for several years, on the technical side, the Index is over-bought and set for another test on the downside, starting around the time of the next Federal Reserve meeting in August. On the fundamental side, The Justice break-up team successfully smashed the merger between MCI Worldcom and Sprint, sending WCOM through resistance with a 13% gain today. This saved the Nasdaq Composite Index from a negative reaction to the latest Federal Reserve action. Look for Justice to target Cisco next, now that they have licked their chops on Sprint, whose shareholders lost over 10% today.

5-minute Nasdaq chart resistance
5-period moving average 3941
20-period moving average 3949
MACD 0.00/4.37 negative
RSI 42.16 neutral
STOCHASTICS 21.87/35.95% negative
15-minute Nasdaq chart support
5-period moving average 3946
20-period moving average 3938
MACD 11.84/12.78 negative
RSI 66.21 neutral
STOCHASTICS 57.58/75.00% negative
30-minute Nasdaq chart support
5-period moving average 3947
20-period moving average 3926
MACD 13.65/9.23 positive
RSI 65.65 neutral
STOCHASTICS 79.83/86.92% negative
60-minute Nasdaq chart support
5-period moving average 3941
20-period moving average 3921
MACD 5.19/-4.02 positive
RSI 60.88 neutral
STOCHASTICS 80.63/76.03% positive
Daily Nasdaq chart support
5-period moving average 3931
20-period moving average 3850
MACD 72.08/68.44 positive
RSI 54.73 neutral
STOCHASTICS 60.16/67.02% negative
Weekly Nasdaq chart support
5-period moving average 3891
20-period moving average 3866
MACD -3.84/43.58 negative
RSI 37.22 neutral
STOCHASTICS 47.46/37.95% positive
Monthly Nasdaq chart support
5-period moving average 3842
20-period moving average 3202
MACD 582.67/538.32 positive
RSI 73.29 positive
STOCHASTICS 61.35/73.22% 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 22 Page