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

To: Matthew L. Jones who wrote (26337)	9/20/1999 8:01:00 AM
From: donald sew	Respond to of 99985

Matt, There appear to be 2 chart formations at work for the SPX. I see a PENNANT within a TRIANGLE. TRIANGLE COORDINATES: UPPER TRENDLINE = connect the intraday highs of 7/19 & 8/25 LOWER TRENDLINE = connect the intraday lows of 8/10 & 9/16 PENNANT COORDINATE: UPPER TRENDLINE = connect the intraday highs of 8/25 & 9/10 LOWER TRENDLINE = connect the intraday lows of 8/10 & 9/2 Last THUR the SPX trade and closed below the lower trendline of the PENNANT but remained above the lower trendline of the TRIANGLE. Then on FRIDAY it rebounded and came back into the PENNANT. For today the upper trendline of the PENNANT is near 1344-1345 and the upper trenline of the TRIANGLE is near 1359-1360. That break of the PENNANT last THUR could have just been an overshoot or a hint of whats to come. As for now a break of the pennant in either direction could be a hint of whats coming; however a significant break of that TRIANGLE would be the more important issue as to the future direction. I have the APEX of that TRIANGLE arriving in about 12 trading days. Im eyeballing it so its only an approximation. That would put it close to the FOMC meeting in OCT. We need to watch the market internals, especially the NEW HIGHS/LOWs for some hint. seeya