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: Doug R who wrote (22152)	10/18/1998 2:00:00 PM
From: Doug R	of 79386

DJIA 13 dRSI situation: All significant lines coming from the 10/27/97 correction have been broken to the upside. The last resistance line does not come out of that system however. This last line (it's always something huh?) is a downtrend line from the RSI high on 3/20/98 across the 7/17/98 peak. The move last week stopped dead as it hit that line. This probably indicates that the 13 dRSI is going to play a straight uptrend/downtrend game and go into a triangle defined by the downtrend line and the current uptrend line (the lows across 8/31/98 & 10/1/98). These lines converge toward the end of the first week in Nov. That seems to conform to a market that will be on "Greenspan watch" since the next FOMC meeting is in mid-Nov. The perception that another 1/4% cut is coming would likely lead to another rally to the DeMark supply line breakout projection of 8900+ as the meeting approaches. Between now and the first week of Nov there will be some base building. If profit taking next week isn't so extreme as to disturb the RSI support structure coming off the 10/27/97 RSI low (the most important line being the one anchored to 6/3/98), overall bias of the market will remain sideways to up. One more note, the value of the10/27/97 to 6/3/98 line gets to 50 on the day that the last resistance line coming off 10/27/97 low (the one anchored to 5/27/98) intersects the current downtrend line on 11/20 (+ or - one day). Line dates: 4 emanating from the 10/27/97 low defining the support structure created out of that correction 5/27/98 5/29/98 6/3/98 6/15/98 The current uptrend: 8/31/98 to 10/1/98 The current downtrend: 3/20/98 to 7/17/98 Doug R

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