Jun 29

Written by: Arthur Daret
6/29/2008 9:45 AM

The Dow Jones Industrial Average has undercut the March lows and the large-cap S&P 500 index is threatening to. The S&P Mid-Cap 400, Nasdaq, S&P Small-Cap 600 and Russell 2000 are still above their prior lows. The S&P Mid-cap 400 and Transportation indexes are holding up the best.

Sentiment, while not quite as extreme as it was in the Spring, is still showing high levels of investor fear and uncertainty. There are bargains out there in the area of REITS and FInancial stocks but one needs to still tread carefully and accumulate positions over time. I suspect that we will probably get some type of a rally soon. Ideally, if we could see a decline early Monday morning, it would help put in a potential bottom. I'd hate to see a large gap to the upside since more often than not, they tend to fade by the end of the day.

The Nasdaq has not approached its prior lows yet. The technology heavy index has held up surprisingly well which is the opposite of what one might normally expect.

Small-cap stocks ($1billion or less in market capitalization) have also held up better than their large-cap counterparts.

The Russell Mid-cap 400 has also done better.

The NYES Composite Index, which is large-cap, is approaching its lows. The Dow Jones Industrial Average (not shown) has undercut is prior lows.

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