Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: James Strauss who wrote (24987)	9/7/1999 12:58:00 PM
From: Les H	Respond to of 99985

Jerry Favors Analysis Sept 3, 1999 In our August newsletter we told subscribers to look for at least a short-term top near August 24, plus or minus 1 day, and to then look for a minimum decline of 4% on a closing basis. On our hotline we gave subscribers an upside projection calling for 11,428 plus or minus 94 points intraday. The Dow reached its all-time print high of 11,365.90 exactly on August 24. The all-time intraday high of 11,429 and the all-time closing high of 11,326 both occurred the very next day, August 25. The Dow then fell 497 points (4.38%) on a closing basis to the August 31 closing low. On our Sunday, August 29 evening hotline update we told subscribers to look for a short-term low in the Dow on Monday, August 30 or Tuesday, August 31, and then a brief rally for one or two days. We then expected a final low near Friday, September 3 plus or minus 1 day. The Dow in fact reached a low of 10,782.10 on a print basis on Tuesday, August 31 and a closing low of 10,829.20. The Dow then closed up 108 points on Wednesday; then turned down as expected on Thursday. At the lows Thursday the Dow was down as much as 205 points, then closed down 94 points. On Friday, September 3 the Dow turned back up as expected. At the highs it was up 243 points. We closed up 235.20. The Dow followed our forecast for last week fairly well. From here we would expect a short-term high by Tuesday or Wednesday of next week and then a brief pullback for a day or two. Any rally next week above 11,177 intraday in the Dow next week will turn the Gann Weekly Chart back up. That should signal higher prices and a potential test of the prior all-time highs. The prior bull-market highs were 11,429 intraday, 11,365.90 on a print basis and 11,326.00 on a closing basis. If those levels are exceeded from here it will be quite bullish short term. If the Dow exceeds 11,177 intraday early next week but later falls back below 10,670 intraday, a short-term sell signal will be given. We remain bullish on the market here and look for new highs over the coming weeks and months. We have a 10-Week upside projection currently calling for 11,731 plus or minus 124 points on an intraday basis.