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RealTime IT News

Stocks Battle Back

Stocks battled back from a steep plunge Friday that was sparked by falling consumer confidence and a car bomb attack on the U.S. consulate in Pakistan.

The ISDEX http://www.wsrn.com/apps/ISDEX/ slipped fractionally to 108, just 2 points above the September low, and the Nasdaq gained 7 to 1504. The S&P 500 slipped 2 to 1007, and the Dow lost 28 to 9474. Volume rose to 1.55 billion shares on the NYSE, and 1.83 billion on the Nasdaq. Decliners led 17 to 14 on the NYSE, and by a just a handful of issues on the Nasdaq.

Oracle gained 3.8% ahead of its earnings report on Tuesday. The company has said it will meet earnings estimates, but analysts remain concerned about the company's revenue and outlook.

Adobe and Genesis Microchip plunged on warnings.

Qualcomm fell 7.7% on a downgrade by Deutsche Securities.

Microsoft continued to push higher on optimism that the company will raise guidance.

Openwave gained 8% on a Soundview upgrade.

Cisco finished in the red, losing 4%.

Some technical comments on the market: Note: To see the charts in the text email newsletter, click on the internetstockreport.com story link at the top of the newsletter.

Note: The Market Commentary will return Thursday June 20 after a three-day hiatus.

Stop us if you've heard this before, but sell-offs that come back most of the way - but not all the way - tend to see more follow-through selling. Someday that won't be the case, but we don't think we're there yet. There could be a little more to this bounce, but we expect it to head back down again early next week. We finally had some signs of strong selling this morning, with a new 52-week low in the NYSE TICK, which means that an awful lot of stocks were being dumped at the same time. However, it may take a few days like that, and finishing at the lows too, to get the kind of capitulation needed for a good rally. We continue to look for a bottom some time in the June 21-28 timeframe. The Nasdaq 100 (first chart below) broke both its September 2001 (1089) and October 1998 (1063) lows today before recovering. Next support is the 1997 lows around 925-950. The S&P 100 (second chart) is just above its September low of 480. The S&P 500 (third chart) stopped just above its September closing (965) and intraday (944) lows today (981.63 was today's low). 923 was the October 1998 low. The critical resistance levels for the S&P are 1030-1033 and 1049-1054. The Dow (fourth chart) found support at 9260 today. Below 9250, 9000 is next support and then 8800-8900. First resistance is 9550, and 9650 and 9800 are critical resistance levels. The Nasdaq (fifth chart) penetrated a lot of support today. Below 1445, 1400 is next support, and then 1387 and 1357, the September 2001 and October 1998 lows. Resistance is 1526, and critical resistance is 1560 and 1607.

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