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

To: Robert Rose who wrote (28545)	10/6/1999 1:20:00 PM
From: HairBall	Read Replies (1) \| Respond to of 99985

Robert Rose and All: Major resistance points on several major indices are now being encountered and breached. The descending resistance trend line is now in play off the 8/25 high for the SPX and SPX Futures. Next resistance for the SPX Futures is the gap down from the 9/20 close to 9/21 open. The gap is acting as a magnet but if filled, it will become strong resistance. Regards, LG

To: Robert Rose who wrote (28545)	10/6/1999 2:24:00 PM
From: donald sew	Read Replies (1) \| Respond to of 99985

Robert, One day is not the best to tell the whole story. Market internals are still stinky. Keep in mind the DOW and SPX are longer-term oversold, so this could just be an oversold bounce. The break above the 62% FIB rebound level, now does indicate that the DOT is heading higher, but can the rest of the market follow. If not then its the good old SECTOR ROTATION, but that doesnt mean some sector cant set new highs, it only confirms the narrowness. As long as the the DOW/SPX stays below the 62% FIB LEVELS(around 10800 for the DOW), then its still SECTOR ROTATION. Dont get me wrong, but I am turning a bit more mid-term bullish, but only by means of understanding that it is within the parameters of sector rotation. Frankly, sector rotation will probably help net players trade rather than the whole market moving up. Again, lets not get carried away with a 1 day performance. seeya