Weekend Market Analysis for July 15th

In the near term the market is becoming rather oversold so we could see a brief oversold bounce occur next week. The overall pattern right now in the Nasdaq looks similar to what occurred in 2004 when the Nasdaq peaked in January and didn't make a bottom until 6 months later in August (points H to I). Also as you can see the Nasdaq had two oversold rallies lasting from 3 to 6 weeks (points J to K) as well before actually making a real bottom in August of 2004. Thus as mentioned above we could see a brief oversold rally develop before much longer if the 2004 pattern repeats itself.

















You can read our complete Market Analysis for July 15th at
http://www.amateur-investor.net/Weekend_Market_Analysis_July_15_06.htm