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

To: Teresa Lo who wrote (18023)	6/22/1999 4:19:00 AM
From: Teresa Lo	Read Replies (2) \| Respond to of 99985

Market SnapShot for Tuesday, June 22, 1999 The September S&P futures closed above 1352 again today, the third time in three days over a key resistance level on the intraday and daily chart. The market is at an important turning point right here. Resistance overhead is at 1368.50 and 1392-1394. Support is at 1300.50 and 1290.50. Today's focus is on the Dow Utilities Index and bonds. Traditionally the interest-sensitive Utilities Index closely tracks bonds, but over the past several months, it has practically gone straight up as the Treasury Bond futures sell off day after day, raising long term interest rates to six percent. The interesting point about this is that there is a classic climax pattern called the Three Little Indians on the Utilities Index as bonds find sellers overhead at the 20-day exponential moving average (EMA), potentially moving the Utilities Index and bonds back into trading in the same direction again. The resolution of this divergence will be very important in determining the market's immediate future, particularly in the face of the FOMC meeting next week. Given all these variables, one needs to construct several possible scenarios going forward in order to be prepared. There is a large dichotomy between the popular market indices. There seems to be more rotation than commonality over the past month, masking the damage done to many sectors, particularly the Internet stocks. With NYSE new highs still outnumbering new lows two to one, the internals are not looking that bad at the moment. The NASDAQ 100 index is in an immediate test of top position here, with the bounce nearing the record high while the other averages lag behind in various degrees. The S&P 500 Index, the SPX, is close behind, at key resistance. The Dow Industrial Average was a laggard today, but nonetheless is approaching key resistance. The CBOE Internet index closed above its 20-day EMA, an important milestone, but is still trading under the 50 day moving average. The charts have been posted to intelligentspeculator.com