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

To: pater tenebrarum who wrote (30061)	10/16/1999 10:02:00 AM
From: dennis michael patterson	Read Replies (1) \| Respond to of 99985

Favors (posted after the close friday): Oct 15, 1999 In our September newsletter we stated that we expected one more rally in the Dow to a minor new high in late September and then a sharp decline of 6% to 10% on a closing basis. On Friday, October 15, 1999 the Dow closed down 266 points, at 10019.71. So far the Dow has fallen 11% from its August 25, 1999 all-time closing high. We were wrong about one more minor new high in September before the sharp decline we expected. We were however correct about the decline we expected. We believe the Dow is within just a few days of the next important bottom. Earlier this week we gave subscribers a downside projection of 9905 plus or minus 152 points intraday. That projection calls for a minimum decline down to 10057, to a maximum of 9753 intraday. We satisfied that minimum target today. Several of our key momentum indicators have now reached their most oversold readings since the August 31,1998 closing low. That low marked the exact closing bottom of a 19% closing decline. The Dow will normally reach a very important low when it falls down near or just under the bottom of its 10-Week 7% Exponential Trading Band. The bottom of that band this week was 9839 intraday. There will be support to any further decline in that area.