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

To: limit who wrote (28953)	10/9/1999 9:03:00 PM
From: Stcgg	Read Replies (1) \| Respond to of 99985

SPX at TL resistance (descending line from mid-July hi, hitting late Aug hi and Oct 8 hi).. Expect Wave 5 decline to begin next week, toward support @ ~1250.. >><<

To: limit who wrote (28953)	10/9/1999 9:08:00 PM
From: donald sew	Respond to of 99985

Limit, >>>> 1400 SPX by Wed <<<< Before it can get to 1400, there is huge amount of resistance from 1340-1385. The the current trendline is right around 1340, just a few points away, which should be the closest resistance area. Then I see another strong resistance right near 1350. Then a series of resistance from 1360-1385. Thats alot of resistance to overcome in 3 days. Im not saying that it is impossible, but theres alot of obstacles to be overcome in only 3 days. The current MAX-PAIN for OEX OPTIONS right now is around 685, and the OEX is already 13 points above it. In the recent months I have noticed that the maximum divergence between the OEX MAX-PAIN and the OEX INDEX is in the 15-20 point range, so we are already clost to that level. So for next week, I do not see the probablity of a strong upside move, even though it is expiration week which is commonly UP or at least flat. The week after expiration week is statistically a weak week and we have another important economic report that week(OCT 20 - TRADE DEFICIT REPORT). The odds of that report being poor(not favorable to the market) is high, in light of the XMAS IMPORTING RUSH. I also have CLASS 1 SELL signals again for early next week, so I think it will be really tough for the market to get to 1400 by WED. seeya