MDA - Market Direction Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis

SPY 671.91

0.0%

Nov 14 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Challo Jeregy who wrote (5583)	2/6/1999 5:21:00 PM
From: donald sew	Read Replies (2) of 99985

INDEX UPDATE ================================ Just checked the charts on the DOW and it appears that some chart patterns are in the process of dissolving in a few days. Such timing is fitting in with my SHORT-TERM analysis implying that a short-term BUY signal should arrive in a few days if the market continues down. BEARISH FLAG ------------------------ Lower trendline = LOWS of 1/25(9063) & 2/2(9198) Upper trendline = HIGHS of 1/27(9325) & 2/1(9431) POLE is about 350-400 points BULLISH WEDGE ---------------------------- UPPER TRENDLINE = HIGHs of 1/8(9648) & 2/1(9430) LOWER TRENDLINE = LOWs of 1/14(9088) & 1/25(9063) The upper trendline of this WEDGE is is same as the trendline from the all-time highs MAIN PITCHFORK(DECLINING) ------------------------------ PIVOT POINT of 11/23(9374) UPPER TINE around 9400-9450 for next week, and declining at a rate of about 100 DOW points per 2 weeks. Ok, the LOWER TRENDLINE of the BEAR FLAG will intersect the tendline off of the all-time highs(also the upper trendline of the BULL WEDGE) in about 2-3 days. On Friday the DOW pierced the LOWER TRENDLINE of the BEAR FLAG slightly but closed within the FLAG pattern. The pole of this BEAR FLAG is about 350-400 points so a significant sustained break to the downside of this FLAG would imply a price target near 9000. A rising flag is normally a bearish pattern. So if this BEAR FLAG materialises it should dissolve and start its decline as early as MONDAY, and the drop should be quick. This FLAG is within the larger BULLISH WEDGE. The lower trendline of the WEDGE is around 9000 for next week, so if the BEAR FLAG breaks down it DOW should head down towards the lower trendline of the WEDGE around 9000. At such point there could be a bounce to the upside. Now we move to the PITCHFORK. This BULL WEDGE is contained within this larger PITCHFORK. If there is a bounce off the 9000 support, mentioned above, then the UPPER TINE(around 9450-9400 & declining) could contain such a rebound. The above is also tying into my SHORT-TERM analysis and my cycle analysis, which is calling for a short-term bottom in 1-3 days, and then an upswing into early MARCH. So if the BEAR FLAG breaks down the drop should be quick and could possibly target 9000, and a rebound off of the lower trendline of the BULL FLAG to be contained within the PITCHFORK which is declining. A break of 9000 to the downside would negate the BULL WEDGE and imply that a weak rebound. Seeya

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next