Are we back to that old rhythm of the Nasdaq rallying while the Dow takes it on the chin? Should one buy new-economy stocks versus selling old economy stocks? Friday's market behavior certainly made it seem that way, although we remain broadly neutral all the major indices for the moment. June will undoubtably be a 4th. "inside" month on the Value Line Index, and we will become more opinionated once we see how that pattern resolves itself in July or August.

Meanwhile, we thought we'd take a look at the Fibonacci rhythm on a micro- basis of that fallen angel, Xerox, pictured below.

Chart produced using Advanced GET End-of-Day

We have drawn our Fibonacci lines not from the absolute high, but from the highest weekly close -- a technique we have found more reliable over time. Using this methodology, we come up with an extrapolated low for Xeroex toward 15 3/4 which would undoubtably complete five waves down as well.

So while around $20 a share, Xerox may seem like a steal, we'd wait for 15 3/4 before doing any bottom-picking.

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Sand Spring Advisors provides information and analysis from sources and using methods it believes reliable, but cannot accept responsibility for any trading losses that may be incurred as a result of our analysis. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities, and should always trade at a position size level well within their financial condition. Principals of Sand Spring Advisors may carry positions in securities or futures discussed, but as a matter of policy will always so disclose this if it is the case, and will specifically not trade in any described security or futures for a period 5 business days prior to or subsequent to a commentary being released on a given security or futures.