The 56 Point TA; Charts With an Attitude Message Board

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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude

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To: Warthog who wrote (20948)	9/2/1998 1:58:00 AM
From: Doug R	Read Replies (1) of 79199

Collin, It still doesn't look very promising. If you recall the instances where I had pointed out trendline intersections in the past, the most favorable bounces and/or continuations and/or breakouts to new highs occurred when a test of the intersection in question came from above and was successful. There have been a couple that came from below and broke above the intersection. Those were quite dramatic but are uncommon. All the major indexes are now below each of their critical intersections. The values I gave last week are still the same for the dates referenced. There is still a possibility that the index values will move back above those intersections in the next couple days BUT... A.) If the intersections are firm resistance from below...sell. B.) If the intersections are broken down through from above...sell C.) If the intersections are broken to the upside from below...buy. D.) If the intersections are used as support from above...buy cautiously. That's 2 sells vs 1 1/2 buys. Just watch 9/4 and 9/8. I had been saying to watch 7890 for a couple weeks before 8/31. The last 2 weeks saw the DJIA below the downtrend that led to 7890 at the intersection of the uptrend on 9/4---9/8 but still above the uptrend. On Monday, the DJIA bounced off the uptrend (which, at the time was still below 7980) at least 3 times before cratering. I had also warned to be wary of an anemic bounce off that area and it turned out that each bounce was more anemic than the previous. 7890 didn't have a chance as that happened. Today, the rebound went back to the 7890 area and did not hold above it. Technically, the DJIA is still a sell based on that activity. I'm still in extreme caution mode as far as buying goes. The R2K managed to get itself back above its intersection but that one comes a week or two after the Naz, S&P and Dow intersections so the R2K is the tail rather than the dog. Doug R

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