3 replies to this topic

[A-ha]

This ratio is currently oversold like never been in this decade. It doesnt stay at this level for long if history is any guide and almost always all of the oversold conditions of this ratio produced nice scorch in near term due to intramarket dynamics. SOX is the heaviest component of NDX and when SOX is this oversold relative to NDX, it lifts entire tech sector when it rallies. Note that SOX was one of the strongest sectors yesterday. Also remember OEX PC closed below 1 while equity pc still showing bullish bias (bearish). So we may get a small VST scorch, especially considering today's earnings imo but it shouldnt last long I am not bullish for IT and LT and I think Nasdaq composite topped out last thursday Time will show

Edited by A-ha, 16 October 2007 - 10:09 AM.

[paulstan]

Good point. As I recall I think Q4 of 2000 had similar configuration, and was an example of the ndx coming down during what is otherwise a normally positive period.

[ed rader]

Good point. As I recall I think Q4 of 2000 had similar configuration, and was an example of the ndx coming down during what is otherwise a normally positive period.

i got long cy, atml and idti right before johnathan joseph made "the call" .

ed rader

[eminimee]

Echo was commenting on that this morning..

http://www.traders-t...showtopic=77530