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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Robert Rose who wrote (17377)	6/15/1999 9:42:00 AM
From: donald sew	Read Replies (3) \| Respond to of 99985

Robert, >>>> I have always thought of sector rotation as being healthy in a bull market. <<<< I have to apologise for not being more specific this time, but I have mentioned it in the past. Sector rotation is common and normal, but when it gets to extremes it is abnormal and I consider it not healthy since it normally results in a pullback/correction. On a statistical basis the normal maximum extreme divergence between the DOW and NAZ is 200 DOW points. This statistic has been over a period of about 3 years. Yesterdays divergence was almost 300 DOW points (using ratio of 4.5:1). This does not mean the next day will be down, but is statistically a prelude to a decline. Seeya