Bobby,
Im think next week also, if that is what you meant by 10/12.
>>>>>>> INDEX UPDATE
-------------------------
My SHORT-TERM TECHNICALS for alot of the market(NAZ, BKX, DRG,XAl,
TRAN, MSH,NDX,ETC) are CLASS BUYS, however the DOW, XMI, HFX, SPX,
OEX are in the midrange with the HFX still in OVERBOUGHT range. This was
surprising since I thought that most of the indexes would have been oversold(my data
not fully undated till following morning). Listing the readings, per my system, of the
indexes not oversold.
DOW - 48(SMACK IN THE MIDDLE)
SPX - 22(LOWER MID RANGE APPROACHING OVERSOLD)
OEX - 30(LOWER MID RANGE)
XMI(MAJOR MARKET INDEX) - 60(MID-RANGE)
HFX(SUPERCAP INDEX) - 80(OVERBOUGHT LINE)
What this implies is that these indexes have alot of downside left in them (the higher the
number = more downside).
What normally happens is that in a negative market(short/mid-term) the overall market
will not bounce untill most of the indexes, especially the major indexes, are all in the
CLASS BUY status.
Since the DOW is at 48, that means that it could have as much as 2-4 more straight
down days before getting to CLASS BUY status.
In light of the futures being down hard it appears that we could have a negative day by
the close. Keep in mind that we have been having late day rallys recently closing the
DOW substantially off their lows - will that type of late day action be over starting
today??
Im still sticking to my MINI-STAIRSTEP (7500-7900) for a few more days, until 7500
is broken to the downside. We tested the upside limits of this STAIRSTEP in the last 2
days, and we could be testing the lower limits at 7500 soon. My current feeling is that
we will get a bounce off the 7500 support first, then a break of it a few days later which
should occur sometime next week. I realise that many are calling for the BIG
KAHUNA today. I do see a break of 7400 soon, but I feel we will get one last small
bounce, which could be only intraday.
<<<<<<<<<<<<<
Seeya
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