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Strategies & Market Trends : MDA - Market Direction Analysis

SPY 665.67

-0.9%

Nov 17 4:00 PM EST

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To: t2 who wrote (77124)	5/17/2001 3:19:29 AM
From: Bruce Brown	Read Replies (2) of 99985

Interesting things to consider in regards to market direction. A better recap for direction could be found in IBD's big picture write ups this week, but a few things to consider include: We now have 5 FED cuts in place. Inflation seems to be largely a non factor at this point in time. Historically, we know what happens after such a series of rate cuts - even amidst the traditional headlines of layoffs, oil/energy, corporate profits, economy is this/that, etc... . All those days where the DOW tried to break through the 11K level over the past months (17 or 18 times I believe) finally occured yesterday on good volume. S&P also broke through a resistance point of 1273, yet there is resistance in the 1290 - 1380 range which will have to be worked through at some point in time. The technical damage done to the Nasdaq, combined with the current earnings requires a lengthy process to work through - especially combined with the resistance. That's a normal process which will take time and most likely create some new leaders (too bad Krispy Kreme is moving to the big board today <gg>) which the overall investor is not yet too familiar. Since the earnings improvement as a whole for the technology led indice is still a little off in the distance, the process will take some patient time, but warrants continued study for emerging leadership. Just look how many times the Dow bumped up against that 11K mark before breaking through. Who knows how many bumps and how much time against that 2232 - 2250 level it will take before it breaks through, but that's going to be addressed at some point in the future. Plenty of interesting set ups to be found throughout all of the indices and yet - it involves work digging around and keeping a journal. BB

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