MDA - Market Direction Analysis Message Board

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Strategies & Market Trends : MDA - Market Direction Analysis

SPY 671.91

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Nov 14 4:00 PM EST

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To: StockOperator who wrote (13290)	5/9/1999 9:47:00 AM
From: Les H	Read Replies (1) of 99985

I doubt it. You have role reversal between the Dow and the Nasdaq. The Nasdaq was in an extreme upward momentum condition in early January as characterized when an index goes straight up and extends above the long-term trading bands (28-week 95% bands). The Nasdaq got almost 10% above the upper band (which would normally characterize an extreme overbought state) before correcting about 12% in February. Since then, the Nasdaq has been had a number of failed breakouts to new highs only to fall back below the January peak and even below the reaction high within the January-February consolidation. The Dow is in the same state now that the Nasdaq was in January. It can stay extended for some time above the upper band at 10,830. The Nasdaq managed for almost five weeks. The Dow has been extended for two weeks. The market is more likely nearing the end of a short-term (1-3 months) or an intermediate-term upmove (6-9 months).

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