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

To: Lee Lichterman III who wrote (24139)	8/30/1999 12:19:00 PM
From: KM	Read Replies (1) \| Respond to of 99985

This is an interesting post Message 11102925

To: Lee Lichterman III who wrote (24139)	8/30/1999 12:37:00 PM
From: Stephen	Respond to of 99985

Lee, with month end, money is still being put to work ... but only in the highly liquid stocks. Gotta run Stephen

To: Lee Lichterman III who wrote (24139)	8/30/1999 12:46:00 PM
From: Les H	Read Replies (1) \| Respond to of 99985

Jerry Favors Analysis marketweb.com Aug 27, 1999 Last week we stated the following: "Technically the Cycles suggest a short-term high near August 24, plus or minus 1 day and then a decline into the end of August. However, if any part of this forecast is to be proven wrong it will probably be the part calling for a decline into the end of August. The decline could prove very short lived and then rally to higher highs near the end of this month. The next important resistance level for the Dow is 11,117 on a print basis. If that resistance is exceeded it will suggest a test of the all-time print high of 11,252.10. We do still have an outstanding upside projection for the Dow calling for 11,450 plus or minus 96 points intraday." The Dow did exceed 11,117 on a print basis this week and as expected rallied to new highs. The Dow reached a new-print high of 11,365.90 on August 24, the exact day that our Cycles called for a short-term top The all-time intraday high so far of 11,429 and the closing high of 11,326 occurred the very next day, August 25. The Dow has since fallen 288 points on a print basis to today's print low of 11,077.80. That intraday high 11,429 was well within our upside projection of 11,450 plus or minus 96 points intraday. On our Wednesday, August 25 update we told our subscribers that because of the signals from our Gann Charts we would not be surprised if the Dow was down 127 points or more on Thursday, August 26. The Dow in fact closed down 128 points on Thursday, August 26. Our work suggests we should see a short-term low by Monday or Tuesday of next week and then begin a rally of one or two days. We should then turn down into a very important bottom due near September 3, plus or minus 1 day. The low due near September 3 could be higher, or lower, than the low due between August 27 and August 31. In any case we would look for a major rally to begin after the low near September 3. Any decline below 11,077 on a print basis in the Dow next week will turn the Gann Weekly Chart down, which will signal a stronger decline ahead before the next bottom. It remains our position that this Bull Market is not over, and despite the prospect of some further correction next week much higher prices are coming over the next few months.