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

To: dennis michael patterson who wrote (25655)	9/13/1999 8:47:00 PM
From: Les H	Read Replies (1) \| Respond to of 99985

WHAT TO EXPECT NOW. ORD ORACLE. marketweb.com The weekly candlestick charts on the December S&P's remain bearish. Last week and the week before, bearish "Hanging Man" candlestick patterns were drawn. The week before that, a bearish "Shooting Star" pattern was drawn. These bearish weekly candle patterns suggest an intermediate term decline be just around the corner. The short-term picture is not as clear, at least yet. Of the last four trading days, three "Doji" candlestick patterns appeared. "Doji" patterns predict the volatility will increase in the market. Last Wednesday, a minus 1000-downtick reading was recorded, Thursday a minus 850 downtick appeared and today a minus 775 downtick was recorded. These high downtick readings suggest the market may bounce back up to the resent highs near the 1375 on the December S&P's. If the resent highs are tested, a possible sell signal could materialize. Jerry Favors Analysis Sept 10, 1999 marketweb.com So far the Dow has followed our forecasts for this year fairly well. At this point we remain longer-term bullish on the market and we do expect the Dow to reach new highs over the coming weeks and months. However over the very short term, by which we mean the next few days, the picture is not quite so rosy. A short-term correction is possible early next week. If the Dow falls below 10,967 on a print basis, and more importantly 10,899 intraday our Gann Weekly Chart will turn down. That would be short-term bearish and signal a test of the key support at 10,732.70 on a print basis and 10,670 intraday. If those two lower support levels are broken next week it would be short-term bearish and could lead to a much sharper plunge over the very short term. The cycles call for a short-term low near September l4, plus or minus 1 day. So some further correction early next week would not surprise us. Despite the probability of a brief correction early next week our Bradley Psychological Indicator still calls for rising prices into late September. Specifically, the Bradley calls for the next short-term top near September 28, plus or minus 2 days. From there the Bradley actually calls for another sharp correction. That decline could last until October 19, plus or minus 2 days, when the next important bottom is due. If the Dow falls below 10,899 intraday next week, but then rallies later in the week above 11,143 on a print basis and 11,200 intraday, a very bullish signal will be given by our Gann Weekly Chart That would suggest a test of the prior Bull-Market highs at 11,365.90 on a print basis and 11,429 intraday. A rally above those levels in the Dow from here would be quite bullish.