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

To: Daveyk who wrote (28848)	10/8/1999 5:36:00 PM
From: HairBall	Read Replies (1) \| Respond to of 99985

Dave kilty: I usually do not track the SOX, but I pulled it up so I could take a look for you... Do not put a lot of stock in Head & Shoulders patterns. They are not very reliable and don't make for a good bet. There is a in your face pattern that has been controlling the ascent of this Index. It is a rising wedge pattern. This pattern usually portends a substantial retrace of itself and on occasion can be a reversal pattern. This particular rising wedge is fairly long-term extending beyond a year. To view the pattern, first change your chart to semi-log. Connect the lows of 10/8/98 to 5/26/99 and extend to the right. Connect the highs of 1/20/99 to 7/16/99 and extend right. On occasion the initial break of the lower ascending trend line of the rising wedge will be re-tested, but eventually the price action breaks down and fulfills the retrace. To view my QChart - SOX Daily Semi-Log Chart: homestead.com Chart formations are not 100%. --------------------------------- My Qchart Trend Lines Green lines are resistance trend lines or resistance horizontal price action areas. Red lines are supportive trend lines or supportive horizontal price action areas. Gray lines are either resistance trend lines, resistance price action areas, supportive trend lines or supportive price action areas that have been broken. They can now act as either support or resistance depending on price action. Dark blue lines are formation lines. ------------------------------------------ Hope this helps... Regards, LG Disclaimer: The above is my opinion only and I reserve the right to be wrong. An overall market expectation is just that and should not be used in exclusion of the evaluation of individual equities or other investment instruments. Do not base any investment decision solely on anyone person's views or analysis. Do your own research and take responsibility for your investment decisions.