MARKET INDEX TECHNICAL ANALYSIS - MITA Message Board

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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA

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To: Killswitch who wrote (11541)	4/10/2002 11:06:48 AM
From: Killswitch	Read Replies (2) of 19219

From Jay Shartsis/RMYPro "A Topper 04/10/02 10:15 AM EDT Very interesting piece from Richard Russell in his latest "Dow Theory Letters." Looking at a long-term chart of the S&P 500 he notes that its 20-month moving average first crossed above its 40-month moving average in May 1980. (Keep in mind that the 20-month is the faster moving one.) In September 1982 the 20-month came down to touch the 40-month, but did not penetrate it. This happened again in June 1989, touching the 40-month but not closing below it. The market then went up for years with the 20 month staying comfortably above the 40-month until January 2001. At that time, after 22 years, the 20-month moving average dropped below the 40-month and has stayed below it ever since. From this, Russell concludes that "a major top is in place." Further he suggests that the 20-month moving average will now offer serious resistance to any rally. It now stands at 1232. "

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