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

To: bearshark who wrote (20510)	7/20/1999 9:36:00 AM
From: HairBall	Respond to of 99985

bearshark: If the apex is not taken out soon on the upside, then the internet indexes may be in the second leg down of their bear market. If they are in a bear market, then the losses in that sector will be huge. I agree... Regards, LG

To: bearshark who wrote (20510)	7/20/1999 9:37:00 AM
From: donald sew	Read Replies (1) \| Respond to of 99985

Bearshark, >>>> One thing I would be concerned about with internet stocks is this chart. It is the IIX but it looks much the same as the DOT and other internet indexes. beta.iqc.com. You can see that the apex was tested and yesterday there was a significant breakdown. The DOT did worse. If the apex is not taken out soon on the upside, then the internet indexes may be in the second leg down of their bear market. <<<<< I fully agree. Right now I have a CLASS 1 BUY signal on the DOT.X. If the DOT.X continues down such would negate the CLASS BUY signal and imply that the downside could intensify. The best example I have of a negated CLASS signal was when the DOW negated a CLASS 1 SELL signal in APRIL. That signal was around 10,100 and the DOW ran up another 1000 points. Just illustrating that the move after a NEGATED SELL SIGNAL could be very strong. Specificly, the DOT.X can go lower today and close at its LOWs, but tomorrow it needs some sort of a bounce or at least flatness. If the DOT.X is still significantly lower tomorrow then that would be a bad sign. The reason I mention the possibility of a negated signal is that it appears that the overall market should be weak today and that the negativity in the overall market could last 2-4 more days since my short-term technicals for the the overall market is in the upper-MIDRANGE. Simply put the DOT.X is already a CLASS 1 BUY when the rest of the market still has a bit of downside potential. seeya