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

To: Stcgg who wrote (28590)	10/6/1999 7:09:00 PM
From: HairBall	Read Replies (1) \| Respond to of 99985

Stcgg: I follow the S&P Futures via the E-mini as the real time feed is free...<g> I see where he/she has pegged the wave four top "must not top number" as 1354.50 for the SPX Futures. It is the high for 9/20. On an additional note, the gap down from the 9/20 low at approx 1348 to the high on 9/21 at approx 1338 comes into to play first as a magnet and then as resistance. After hours trading in the E-mini has moved up into the gap and at this typing is at 1339.5. Regards, LG

To: Stcgg who wrote (28590)	10/6/1999 7:53:00 PM
From: donald sew	Read Replies (1) \| Respond to of 99985

Stcgg, As for a short-term top, I have CLASS 1 SELL signals for most of the indices, basicly all of them. The 5-DAY TRIN is around 3.90, and the common rule is that it is a SELL signal when it is low in the 4.00 range. I also have a CLASS 1 BUY SIGNAL in the VIX, which moves opposite to the market and also implies that the market is at a short-term top. The market was positive all day and closed very strong in many sectors, however it was interesting to note that the market internals were actually weak. The ADVANCES only outnumbered the DECLINES slightly. The NEW HIGHs/LOWs actually was worse than yesterday in light of the market being up so much. So my indicators are calling for a short-term(1-5 days) top at tomorrow's highs. However, I also noticed that since I got 2 CLASS SELL signals close together, such implies bullishness, so I am not yet expecting a strong pullback unless assisted by news, and we get the important labor numbers on FRIDAY. Although the SOX was up, it lagged and formed a SPINNING TOP, which is a sign of indecision, and commonly occurs near a top, whether a major or minor top. This does imply and support that SECTOR ROTATION is still alive and well. Dont get me wrong, if one can pick the right sector there is still money to be made on a trading basis, but if one is on the wrong side then the opposite. As long as SECTOR ROTATION is around it is still an anomoly/abnormality, and as long as this anomoly is still around it will be corrected. That doesnt mean that the market cannot still move up in various sector, just that ultimately it should be corrected. When who knows for sure. seeya