I think the future is very bullish for the broad market other than for the technology sector.
Just from a short-term technology point of view, it suggests that the over-sold lows we saw yesterday might be tested again at some point in the future.
I think that's more of a topping action, the probability that looking forward through the year it will be on the down side.
The fourth-quarter rally is so long overdue. The oversold conditions are so extreme that we should see a positive trend over the next six to eight weeks.
But even on the technology side, it is an extremely oversold area. So the bias should be to the upside.
I think there is a lot of bullish action taking place under the broad market indices that is not related to technology, but in terms of financial services, industrials, chemicals, utilities -- areas that don't significantly play in terms of weight.
I don't see the technical action on the TSE being very constructive today. It's a surprise that Nortel hasn't more significantly rebounded.
We are in a cyclical bear market and investors' reaction to good news is certainly indicative of that.
It's not just a recovery. It's an aggressive accumulation that to me is indicative of an underlying primary bull market. I mean, I am surprised by the degree of enthusiasm that is evident in tech stocks.
We had a reasonable move in some of the tech stocks and Nortel had a very lackluster one and that's not healthy.
