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

To: Teresa Lo who wrote (25487)	9/15/1999 4:11:00 AM
From: Teresa Lo	Read Replies (1) \| Respond to of 99985

The Numbers Please...Morning Market SnapShot for Wednesday, September 15, 1999 For the balance of the week, traders are completely focused on economic numbers. Yesterday's strong retail sales numbers hit the bond market hard, pushing them to a new multi-month low. The CPI is due out this morning with more data to come on Thursday and Friday. Market participants are simply paralyzed, with no one wanting to make commitments to any type of position, waiting for number after number in an attempt to divine the direction of interest rates as the countdown to the October 5 FOMC meeting goes on. The December Treasury bond tested the low of June 24 and August 13 today, making a new low of 112^16. We have been pointing out that the bond market is very weak. If today's numbers cannot produce an instant rally right here to confirm support at 112, the descending triangle seen on the daily chart will be broken to the downside, forcing interest rates up. This will not only put stocks on the defensive, but push them to brink yet again. Market internals are deteriorating again, with 52-week NYSE new highs of 49 compared to 196 new lows. The 10-day moving average of the net differential has been unable to turn up on this bounce. With the S&P 500 Index trapped in a triangle, in an ever-contracting trading range, the market is simply waiting for a catalyst, a powerful one, to move it either way. Until then, we are still playing the waiting game. Charts specific to these comments have been posted to intelligentspeculator.com