Thursday, April 29, 2004

With the Nasdaq now sitting at major short-term support, our sentiment measures are indicating grossly oversold conditions.  The STEM.MR model for the Nasdaq is at 70% - a level seen at prior lows over the past six months or so.  We should be able to rally from here (but don't count out the possibility of a push below last week's lows to clean out the sell stops sitting underneath).  In any event, the next day or two will create a very important test.  By all rights, we should be able to hold from around these levels considering the nature of our indicators.  If we don't, I think a test of the March lows is in the offing. 12:33:23 PM