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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: Teresa Lo who wrote (624)	10/14/1999 3:48:00 AM
From: Teresa Lo	Read Replies (2) \| Respond to of 19219

THE TRADER'S NOTES for Thursday, October 14, 1999 Yesterday's Observations: Some fear and panic triggered by a new low in Treasury Bond futures. Tests 1290 in the December S&P futures, a critical level, which, if broken, paves the way to testing the September 28 lows. Market internals deteriorating fast as new NYSE 52-week lows expand to 324 vs. 15 new highs, and the 10-day MA of Net Differential of NYSE New Highs/New Lows turns over, confirming weakness across the board. Dow Jones Industrial index may be past the point of no return on its way to test the September low. The Nasdaq 100 index reaches the 20-day EMA, the first target of the failed test of top. The second target is the 50-day MA at 2400. The CBOE Internet index has retraced to the 20-day EMA. If this is broken, then the next target down for the INX is the 50-day MA at 460. Today's Theme: Waiting for economic numbers. Retail Sales expected this morning, and look forward to Producer Price Index, Industrials Production and Capacity Utilization due on Friday. The market at the point is not able to move up on good news and goes down on bad news. Traders seem intent on focusing on inflationary aspects of all the economic reports. Trade intraday with the trend. Remember to keep proper intelligentspeculator.com risk and money management rules in place at all times. The Trader's Notes prepares the trader for the day ahead, providing information on market sentiment, internals, support/resistance levels and key pivot points in the major market indices. Use of moving averages and the Average Directional Index (ADX) indicator helps to determine whether the market is trending up/down or chopping sideways. Using Japanese candlestick charting techniques, observation of market action around support and resistance assists in the analysis of supply and demand based on fundamental principles of classical technical analysis. The results set up "if-then" scenarios used by the trader during market hours. Technical analysis is not used as a tool to "predict" the future or to pick tops and bottoms. It is used to detect areas of trend change and emerging trends. In a trading range, traders generally look to buy at the low end of the range and to sell at the high end of the range ? or stay out all together. In a trending market, traders generally look to enter the market on every retracement until it enters a trading range and ends on a test. The goal is to buy every dip in an uptrend and sell every rally in a downtrend. The trend is your friend until the end when it bends! Charts specific to these comments have been posted to intelligentspeculator.com