Silicon Investor (SI) -- The First Internet Community

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 : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: Teresa Lo who wrote (128)	6/16/1999 11:13:00 PM
From: Teresa Lo	Respond to of 19219

Market SnapShot for Thursday, June 17, 1999 Yesterday we stated that an interesting picture was showing up on the 45-minute chart of the September S&P futures contract. There was a nice neat neckline just under the gap left from last week at around 1325, leaving the rest of the pattern to set up a head and shoulder bottom. We said that it was necessary to hold 1310 to keep the pattern valid. With the benign CPI number this morning, stocks and bonds rallied and the neckline was history. At this point, we are in a trading range between 1352 above and 1300.50 below, with support in the 1330 area where it gapped up today. The 20-period EMA is at 1332, which should also provide support on a pullback. One interesting thing that strikes us at this time is how there have been two head and shoulders type formations over the past two weeks. It's left gaps between 1320 and 1330 all over the chart where buyers and sellers are basically conducting hand to hand combat every time we get there. Note the use of the Edwards and Magee formula to measure both head and shoulders patterns. You take the difference between the head and the neckline and add it to the point where it breaks the neckline. In the case of the bottom pattern, it was 1325-1300, about 25 points. Add that to the breakout of the neckline in the 1325 area, it gives a target of 1350. Looking at the daily chart, resistance overhead is at 1348, 1352, 1368.50 and 1392. Support is at 1300.50 and 1308.50. Charts have been posted to intelligentspeculator.com

To: Teresa Lo who wrote (128)	6/26/1999 2:53:00 AM
From: Teresa Lo	Read Replies (1) \| Respond to of 19219

Multiple time frames is a very important concept in trading. When traders from different time frames all line up in the same spot, it's important to watch for support and resistance. Over the last few days there have been two instances where the moving average from both the 45- and 135-minute intraday chart have lined up to form resistance overhead and bounces in the downtrend in the S&P have ended after meeting sellers in those spots. Chart specific to this comment has been posted to intelligentspeculator.com