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

To: HairBall who wrote (18655)	6/28/1999 12:12:00 PM
From: bearshark	Read Replies (1) \| Respond to of 99985

LG: We had a 70 million NYSE share first half-hour. There is some quiet buying probably to adjust portfolios for the end of the quarter. I consider the formations in the DOT and IIX to be currently bearish because they fell out of the symmetrical triangles and have failed to successfully penetrate the apex and move up. I also am concerned that the SPX took one whiff of resistance and fell back. The OEX did something similar. The INDU is still in its symmetrical triangle not knowing what to do. This has happened with declining volume. The NYSE data that I use shows there is a buildup of buying power in this market. Under these conditions, the market can explode upwards. It would not be extraordinary to see a 300-point move up on the INDU in a day with huge volume by the end of this week. The heavy volume must be present to push the market through the resistance levels. I have no idea if that will happen but something must expend this buying power in the market. The above was written at 10 AM Eastern. I was called away then and I am finishing now. We are up over 120 on the INDU and everything looks good. However, it is low volume. Although the volume is low, the movement may draw in the money yet. If and when they are drawn in, the volume should increase dramatically. If this up-move holds into 3PM, the volume could increase dramatically if the money comes in. As the market moves up, they will be more fearful about missing a move. That fear could pull them in. If they do not come in and volume remains low, this energy is being expended for nothing. It will run out of steam without the big money's help. This is a waiting game. I am willing to miss the first 300 points on a 1,000 point move to make sure the move is for real.