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

To: Smooth Drive who wrote (29527)	10/17/1999 9:17:00 PM
From: Smooth Drive	Read Replies (2) \| Respond to of 99985

LG'S OVERALL MARKET COMPOSITE INDEX The 10 X 30 P&F chart of the OMC gave the predicted double bottom sell signal at the close of Friday's action. Message 11539969 * 1760 X * X * 1750 X O X * X O * 1740 X O X O * X O * < Bearish 1730 X O X O * + X O Resistance Line 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 O 1670 X O X O X O X O X O X O 1660 X O X O O X O X O X O 1650 X X O O X O X A O 1640 X O X * O O + O < Double Bottom 1630 X O X * + Sell Signal 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 Support Line 1530 O X + 1520 O + 1510 + 1500 1490 1480 High Pole Formations (regardless of the type) are a terrific leading indicator P&F pattern. The sell signal doesn't always occur in the first down column as it did here -- but it does occur more often than not. The Revised Bullish Support Line at 1670 offered little support. Look at the current horizontal support at 1640. If it breaks through here and fills the 1630 box the pattern would be a spread triple bottom sell signal. Historically this chart does not go much lower than 12 boxes down without a reversal up. A bounce here would be "normal". The Bullish Support Line at 1580 is in jeopardy. This line was formed from the low of 910 that occurred on 10/08/98. If it does penetrate this line the Bearish Resistance Line would become the "Official" trendline and the chart would be long term bearish. This chart is now long term bullish (it's above its Bullish Support Line) and short term bearish (because of the double bottom sell signal at 1640) The first vertical bearish price objective is an incomplete 1520 and the second is 1400. Take care, Eric

To: Smooth Drive who wrote (29527)	10/30/1999 11:17:00 PM
From: Smooth Drive	Respond to of 99985

LG'S OVERALL MARKET COMPOSITE INDEX The 10 X 30 P&F chart of the OMC reversed is at an all time high. 1800 X 1790 X 1780 X 1770 * + X 1760 X * X * + X 1750 X O X * X O * X 1740 X O X O * X O * X 1730 X O X O * + X O X 1720 X X O X O * X O X 1710 X O X O X O + * X O + X 1700 X O X O X O + X O + X 1690 X O X X O X O X X O X X 1680 X O 9 O X O O X O X X O X O X 1670 X O X O X O X O X O X O X O X 1660 X O X O O X O X O X O X O 1650 X X O O X O X A O X * 1640 X O X * O O O X * 1630 X O X * O X * 1620 X O * O X 1610 X * O 1600 X * 1590 O X 1580 O X 1570 O X 1560 O X 1550 O X 1540 O X 1530 O X 1520 O 1510 1500 1490 1480 Wow! The previous high of 1760 had been hit and turned back three previous times. The current column of X's passed right through 1) the Bullish Resistance Line at 1720; 2) the Bearish Resistance Line at 1730 3) horizontal resistance at 1760; and 4) a Bullish Resistance Line at 1780. The next Bullish Resistance Line is at 1840. The first bullish price objective off the bottom is 1850, and the breakout price objective is an incomplete count of 2030. This chart (as well as a number of indexes) is extended. I would expect a pull back early next week. But, with the New High New Low Bullish % Index and the Optional Stocks Bullish % Index reversing to the upside, I say we're going higher. I'm short and intermediate term bullish. Take care, Eric

To: Smooth Drive who wrote (29527)	11/15/1999 1:47:00 AM
From: Smooth Drive	Read Replies (2) \| Respond to of 99985

LG'S OVERALL MARKET COMPOSITE INDEX The 10 X 30 P&F chart of the OMC is banging up against the 2nd Bullish Resistance Line of the bottom. It's been below it since July. 1930 + 1920 + X 1910 + X 1900 + X X 1890 + X O X 1880 2ND BULLISH RESISTANCE LINE > + X O X 1870 + X O 1860 + X * 1850 + X * 1840 + X * 1830 + X 1820 + X 1810 + B 1800 + X 1790 + X 1780 + X 1770 + * X 1760 + X * X * X 1750 + X O X * X O * X 1740 + X O X O * X O * X < 50 DAY MA 1730 + X O X O * + X O * X 1720 + X X O X O * X O X * X 1710 + X O X O X O + * X O X O X 1700 X O X O X O + X O X O X 1690 X O X X O X O X X O X X O 1680 X O 9 O X O O X O X X O X O X 1670 X O X O X O X O X O X O X O X 1660 X O X O O X O X O X O X O + 1650 X X O O X O X A O X + 1640 X O X O O O X + 1630 X O X O X + 1620 X O O X + 1610 X O + 1600 X + 1590 O X + 1580 O X + 1570 O X + 1560 O X + 1550 O X + 1540 O X + 1530 O X + 1520 O + 1510 + < BULLISH SUPPORT LINE 1500 1490 1480 Since approximately mid July, LG's OMC Index has been in the channel between the Bullish Support Line and the second Bullish Resistance Line of the bottom. Beginning in August, it's risen risen up to this resistance line four times, and been pushed back three. Is this the time for an upside breakout? This is the longest column of X's (21) for this charts history. What a run! It did reverse down for one day on the 10th, but was right back up on the 11th and 12th. The NAZ is clearly driving this chart. You can also see how extended it is above the 50 day moving average. Historically, when this chart gets this extended, it consolidates a bit. Its vertical bullish price objective was 1850. I would look for another pull back this week. Take care, Eric