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

To: Smooth Drive who wrote (29027)	10/11/1999 9:08:00 AM
From: HairBall	Read Replies (1) \| Respond to of 99985

Hi Eric: Thanks for that post. It is always good to see your work. Especially when you use my OMC Index...<g> I do not have the expertise with P&F charts you have, but I thought I would post my work anyway! MY OMC (Overall Market Composite) Index This chart is still on a buy, but I expect it to turn down very soon. That opinion is based on other analysis. homestead.com Value Line Geometric Index homestead.com Regards, LG

To: Smooth Drive who wrote (29027)	10/14/1999 1:40:00 AM
From: Smooth Drive	Read Replies (1) \| Respond to of 99985

LG'S OVERALL MARKET COMPOSITE INDEX The 10 X 30 P&F chart of the OMC reversed down very strongly with today's close: 1760 X * X 1750 X O X * X O 1740 X O X O * X O 1730 X O X O * + X O 1720 X X O X O * X O 1710 X O X O X O + * X O 1700 X O X O X O + X O < High Pole 1690 X O X X O X O X X O 1680 X O 9 O X O O X O X X + 1670 X O X O X O X O X O X + 1660 X O X O O X O X O X 1650 X X O O X O X A 1640 X O X * O O + 1630 X O X * + 1620 X O * + 1610 X * + 1600 X * + 1590 O X + * 1580 O X + * 1570 O X + * 1560 O X + * 1550 O X + * 1540 O X + < Revised Bullish upport Line 1530 O X + 1520 O + 1510 + 1500 1490 1480 The index did infact hit the 1760 box on Monday. This chart has hit that box twice before on 7/16/99 and 9/10/99. Three times now it's found considerable horizontal resistance at 1760 and has never broken through this barrier. Even though this chart was extended (due for a pullback) at the close on Friday, I said it showed strength because of its pattern. Well, the chart that showed strength on Friday is now on a High Pole Formation, which is anything but strength. A High Pole occurs when a column of X's exceeds the previous column of O's by at lease 3 boxes, and then reverses back and gives up more than 50% of the boxes in the last column of X's. In this case there were 11 boxes in the last column of X's, and 6 boxes would be more than 50%. 80% of the time a High Pole will result in a double bottom sell signal in the current or next column of O's. It would not surprise me to see it pass through the Revised Bullish Support Line support at 1670. As most folks know, charts (P&F, bar, candle, etc.) are bullish at the top and bearish at the bottom. Even though this chart was showing strength, the New York Stock Exchange Bullish % chart (our primary long term indicator) has been bearish for some time. Take care, Eric