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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: DJessen33 who wrote (67825)	9/17/1999 8:18:00 AM
From: Franco Battista	Read Replies (3) \| Respond to of 132070

Good question. According to Dow Theory we are not ina bear market yet as both the Dow and transports have not made new lows. The transports have been way below their low for some time (an omen?) but the Dow must go below 10467 to trigger a bear market signal. The magic number on the S&P is 1266. As far as breadth goes- it stinks. Seventeen months with negative breadth (the two previous occasions this occured, guess what? crash!)means most investors have lost money. There are fewer and fewer big cap stocks supporting the market and giving the illusion that we are going up. Yesterday was a blatant example of this buying- both the Dow and NADAQ down but the S&P positive! 891 advancers and 2065 decliners. 18 new highs and 235 new lows- and on and on. Most importantly, there are fewer and fewer buyers and when they do buy, it is like wasted ammunition for the selling is relentless. This market is selling off smartly not attracting too much attention nor creating panic, thus ensuring that the vast majority of investors will get hurt. As soon as the favorite stocks will start selling off (when, that is the million dollar question, but it should be not too long) then this market will have stepped over the edge.