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

To: Teresa Lo who wrote (18840)	6/30/1999 2:45:00 AM
From: Teresa Lo	Read Replies (2) \| Respond to of 99985

Market SnapShot for Tuesday June 30, 1999 It's that time again, the eve of an expected move in interest rates by the Federal Open Market Committee. The market traded higher today, with bonds rising to test resistance at the 20-period exponential moving average overhead. The NASDAQ 100 is testing the all time high. The CBOE Internet Index appears to be forming a head and shoulders bottom. Everything appears to be on the mend. There is a nonchalant mood in the financial media, as if a single rate hike is all there will be. No one seems to be worried. This is the problem. It seems too good to be true. Market internals are something that most technicians study with great interest. In this great bull market, most technical overbought signals have been discredited, with the advance decline line as the most high profile example. The A/D line has declined for years as the market goes up. Traditional fundamental guidelines such as price earnings ratio and dividend yield went out the window a long time ago. What internals are left that are of value to the technician? The CBOE Market Statistics for June 29 gives a combined put/call ratio of .45. The VIX, the market volatility index, stood at 23 at the close. New NYSE 52-week highs are outstripping new lows. These numbers are usually found when the market is near a high, rather than a low. The market is rallying into the FOMC meeting where “bad news” is expected, but the rallying is into tests of tops and other resistance. It is curious indeed. And we will have our answer tomorrow at 2:15PM EST. Charts specific to these comments have been posted to intelligentspeculator.com