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

To: James F. Hopkins who wrote (30364)	10/17/1999 11:54:00 PM
From: John Madarasz	Read Replies (1) \| Respond to of 99985

In the Eleventh Hour... What should an analyst keep his attention focused on in the days and weeks immediately ahead for clues that the trend is truly about to change? Again, it is important that you keep your eyes rivited on trading volume. A 10-day moving average of NYSE and NASDAQ advancing volume works well. Any violation of the upward trendline will likely signal a trend reversal is about to take place. Another good volume indicator is the Cumulative Volume Index (CVI) which is basically a running total of advancing minus declining volume. As long as the CVI is rising (as it has been for the better part of this year) the bull market is still intact. When it breaks down, however, a trend reversal will have been signaled. decisionpoint.com gold-eagle.com In the event we are wrong and the bear trend really has gotten underway, you'll know it when certain key support levels in the Dow are violated on high volume. Among them: 10,900-11,000 and 10,400-10,500. We should also witness a corresponding breakdown in the Transportations and Utilities. Most importantly, NYSE volume should expand in the direction of the downward trend. If this does not happen, it will signal that not enough selling pressure exists to propel the markets lower. Best Regards, John