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Strategies & Market Trends : John Pitera's Market Laboratory
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To: John Pitera who wrote (614)3/30/2000 12:22:00 AM
From: Chip McVickar  Read Replies (2) of 33421
 
Hello John,

This chart pattern for the Nasdaq is a classic "M" pattern of a top. They are often seen at the beginnings of Bear Markets. It matches every requirement except the close below 4450.

The last one we saw was in the SPX when it formed in Dec 99 and Jan 2000. That was also a classic "M", but it did not break, instead went on to form a descending channel or coil pattern as your charts described. It was also defined by a major fork.

The strongest fork on the Nas chart is off the 1/24 high using the big spread that follows. The market sits right on its median line.... and that would suggest a buy right here and it adds another signal to GZ's Buy.

However, if the market breaks further off that middle tine it would be a sell. The lower tine sits at 4100 for tomorrow. A strong break here could be very serious for the Nasdaq. As you say.....the next few days could be very important.

BTW, this "M" pattern is also seen in the weekly Nas.
What do your weekly indicators suggest..?

Chip
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