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Strategies & Market Trends : Why the markets will continue higher...

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To: Joss who wrote (21)	12/3/1997 2:11:00 PM
From: GROUND ZERO™	Read Replies (2) of 745

Hi Steve, Take a cash SP chart. 1) Bisect the April97 low and Oct97 high with a line off the Feb97 high. The October minicrash bounced off that line. 2) Bisect the August97 low and the Oct97 high with a line off the August97 high. The October minicrash also bounced off that line. Both lines provided a rally point. You only needed one line. Two lines so close together and intersecting allowed me to buy with great confidence of a strong rally in the near term. Warning: If the market returned to that line within days and hangs around that point, it will go lower. A great shorting opportunity. But, the pullback never got near it. The subsequent rally over recent weeks is the result of the bounce off those two lines. Now, bisect the Oct97 high and Oct97 low with the low in mid Sept97, and you will see the upside resistance as clear as day. You will notice the current rally off the October lows is running parallel with that line. Any super rally will be kept in check with that higher resistance. Any sudden burst of buying that causes prices to penetrate, or even touch that line, will be met with considerable selling. Please let me know if it's getting clear or not. GZ

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