Lee, not "a turn back up", but "may provide at least a temporary cushion here".
In looking over past history, it would be extremely unusual for the
whole deal to be done in one expiration month.
There are countless times where half the move was done in
one expiration month, there was a pause for our fine feathered
specialists and market makers to unload unwanted inventory, and then games resumed.
That 10 day open arms figure reached a substantial oversold condition.
If you look back on the chart, and the historical chart, it would be very rare, though not unheard of, for the market to continue to tank
right away. It is a matter of probabilities.
On the other hand, the storsi 8-5 is pointed down and is not yet oversold. Other oscillators still have room to go down.
There is an important trendline in NYA that goes from 9/24/98 through 2/10/99 which Friday was 616.75. The low Friday was
617.17.
Monday that figure is 617.25.
Just to take a wild guess, AOL closed under a buck to shake weak holders out Monday, then it will rally to clean out the specialist's longs that he got bagged with, and then the games will begin.
Vitas |
