Serge Berger is the head trader and investment strategist for The Steady Trader
. Sign up for his free weekly newsletter . The oversold bounce in equities that
started on Friday carried over to Monday's trading and continued in full force
right into the close. Because of the current speed/volatility of the market, we
must focus on close-up charts to get a better read of the situation. The hourly
chart of the S&P 500 shows that with yesterday's rally the index has now come
back to test the bear flag from which it fell out of last week from underneath.
The stochastic indicator (not shown) is well into overbought territory and a
slowing of the oversold bounce should be in order barring any bazookas
fromEurope. Both in terms of the broader indices and in terms of the S&P 500
sectors, technology was one of the major laggards yesterday. Semiconductor
stocks as measured by the Semiconductor HOLDRs (AMEX: SMH ) closed up just
0.27%, while the Nasdaq 100 close up just 1.24%. Large-cap technology stocks
have so far remained the last hiding spot for investors as stocks like Apple
(NASDAQ: AAPL ) and Amazon.com (NASDAQ: AMZN ) have remained stable.
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