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

To: jjs_ynot who wrote (17972)	6/20/1999 1:04:00 PM
From: Les H	Read Replies (1) \| Respond to of 99985

Depends on one's parameters. The daily MACD crossed over with a buy signal last week however the weekly MACD gave a sell several weeks ago and continues to move down. The Wilder RSI broke a downtrend line from April in conjunction with the S&P making a new reaction high in the right side of the "W" bottom. However, the 5-day Wilder RSI and the overbought TRIN readings on both markets indicate a short-term pullback is near.

To: jjs_ynot who wrote (17972)	6/20/1999 1:15:00 PM
From: Doug R	Read Replies (2) \| Respond to of 99985

I didn't say it was. I said it was telegraphing a break over 0. The move on it is not coming off a divergence however. Intermediate term SMI is showing weakness. Intermediate term stochastics (89, 3, 5) shows a hinge that suggests a turn down shortly. The value of 80 is key on it. A break over 80 supports strong moves to the upside. A turn down that leads to a negative stochastics crossover when 80 is exhibited as resistance supports a strong move to the downside. 89, 3 %K is currently 76 and the rate of ascent is slowing. There's room for an upward move in price as the 89, 3 gets to 80. There's room after a turn down from 80 for the %K to meet %D which leaves about 4 more days before either a negative crossover or possible knee is seen. A knee followed by a move of the indicator over 80 would be very bullish. The system I use on the 13 dRSI shows intermediate term weakness with room for a move up tomorrow just as the Stochastics shows and the MACD suggests. The reaction to this latest technical bounce that's in progress is set up to be a telling event. Doug R