RealTime IT News

Stocks End The Week Mixed

Blue chips fell Friday on more weak economic data, but Dell's better than expected earnings boosted tech stocks.

The Nasdaq climbed 16 to 1361, the S&P 500 slipped 1 to 928, and the Dow lost 40 to 8778. Volume fell to 1.27 billion shares on the NYSE, and 1.5 billion on the Nasdaq. Advancers led 18 to 13 on the NYSE, and 19 to 13 on the Nasdaq.

Dell rose 1.4% after matching earnings estimates and beating and raising revenue estimates.

IBM surged 3.7% despite a downgrade.

NVIDIA , Autodesk and Analog Devices gained despite lukewarm results.

Serena soared on better than expected results.

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.

Today was the second straight extremely low reading (lower than .45) on the equity-only put-call ratio (today's close was .38, on top of yesterday's .42 close). We went back two years to find similar two-day readings (one reading just above .40, the second one lower than .40) and found four occurrences: January 23-24 of this year, which marked the top in the S&P 500; May 18-21, 2001, also a major top; April 18-20, 2001 (a month to go in the rally, but the start of a three-day 10% pullback in the Nasdaq); and a week of very low readings in late August 2000, also a major top. In fact, today's reading was the lowest since August 31, 2000. One indicator alone is not enough to call a major top, but the evidence suggests a sharp pullback beginning next week. The Dow and S&P (first three charts below) sure look like they are forming bearish rising wedges into major resistance. 8897-8927 is critical resistance on the Dow, and 8600 is critical support. For the S&P, resistance is 935-940, critical resistance is 950, and 900 is critical support. On one hand, the Nasdaq (fourth chart) looks like a double-bottom breakout above 1355 (albeit on low volume once again), and on the other hand, it could be a perfect ABC bear market correction at 1368 and ready to head to new lows. If it can clear 1368, the technical picture will turn positive, but there is resistance at 1387 and 1395-1405. Support is at 1355 and 1325, and important support can be found at 1300, 1263, 1250 and 1220. The SOX, the semiconductor index (fifth chart) is right at critical 350 resistance.

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