MDA - Market Direction Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis

SPY 652.56

-1.5%

Nov 20 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Les H who wrote (42404)	3/6/2000 7:41:00 PM
From: Les H	Read Replies (1) of 99985

WHAT TO EXPECT NOW. March 6, 2000 ORD. The March S&P's hit a resistance area near the 1410 level on Friday. Friday the "5 day ARMS" hit 3.42, which is a bearish reading, and one of the lowest readings for the last 12 months. If the "5 day ARMS" stays near a reading of "4.00" for several days or weeks, then that would imply another significant decline is on the way. This condition happen from mid-November to late December of 99 where the "5 day ARMS" stayed mostly between 3.50 to 4.50, which in turn predicted an intermediate term decline (the decline that started from the January 3 high tell present). Therefore we will keep an eye on this indicator over the short term. The March S&P's retraced almost a 100% of the decline form the February 15 high, which is the previous swing point. This condition implies the market should head higher after the next pullback is complete. A gap formed between last Thursday's close to Friday's open that need to get filled before the market heads up again and to fill this gap the market would need to pull back to the 1380 area. We will look for a bullish signal to be generated near the 1380 later this week. Our upside target will be around the 1440 - 1450 level. The 1450 area is where a "Bearish Engulfing" pattern formed and "Bearish Engulfing" patterns are usually tested and once tested turn into a resistance area. We will be watching the 1380 area for bullish signals. The XAU index may head sideways to a little down for the next several weeks. The bigger picture on the XAU is a longer term bottom forming.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next