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: HairBall who wrote (18583)	6/25/1999 9:49:00 PM
From: Benkea	Respond to of 99985

The Bottom Line Excerpts from EWT ST Update for 6/25/99: “Taken as a whole these measures still suggest that at minimum, stocks will move sideways for a longer period until technical measures reset themselves to support another leg of advance. The more probable near-term scenario is that prices will undergo a shake-out, selling-off for the next several weeks into the early July cycle bottom. Yesterday the [Dow Industrials] fell hard most of the day, breaking below the key support level I cited in Wednesday's Update (10530). Thus far the S&P indexes have yet to break their key support levels, thereby confirming that another down leg in the short term bear trend is underway. My sense is they too will break their key support levels and fall with the Dow. Today's trading activity was very heavy. The Dow's entire gains for the day were over by lunch time; the blue-chip averages fell all afternoon into the close. NYSE breadth started the day at better than 2-to-1 on the upside, but closed the day at 1.08-to-1, giving back nearly all of its early morning strength. NYSE volume was missing in action at only 614 million shares traded, the slowest day since December 30. For the week the Dow fell 2.8%, the S&P 500 lost 2% and the NASDAQ Composite slipped .4%. In Elliott terms the Dow Industrials look like they are close to finishing a bearish contracting triangle, with the next probable move a thrust lower (see chart). The labeling from the 11131 peak (May 13) peak is this: Wave A declined to 10409 (June 1). A bearish wave B contracting triangle likely ended near today's 10650 high. Now due is a wave C thrust down into early July, bottoming in conjunction with the 9-month cycle. Breaking beneath 10431 (June 11 low) should confirm this pattern. First support is 10170, lower support is near 9950.” “ The equivalent support level in the [September S&P futures] is 1250-1262; in the cash index it is 1246.47-1252.65; in the OEX it is 621.90-625.21; in the Dow Diamonds it is near 101 and the S&P Spiders it is just above 125.” Elliott Count Using EWT Update values on a HLC daily chart: to help you follow his count. See paragraph beginning with “In Elliott terms…” 10409 – 6/01 ------------A 10917 – 6/07 -------[a] 10431 – 6/11 ------- 10889 – 6/18 -------[c] 10471 – 6/24 -------[d] 10650 – 6/25 -------[e]-—B? C to come? Ç§ boards.fool.com