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

To: donald sew who wrote (31956)	10/31/1999 9:26:00 AM
From: Gary Burton	Respond to of 99985

One of the things that greatly troubles me now is the overextension in GE, as a proxy for the DJ. On a log chart basis, it seems to have already marginally exceeded its long term up channel, leaving virtually no room for additional gains in the short run. At Friday's high, the % gain from the 1987/88 low to the 1990 top (Wave 1) is now virtually exactly equal to the % gain from the 1998 low (Wave4) up to now, implying that Wave 5 might already be complete. If one draws a trend line connecting the lows of Waves 2 (1990 low) and 4 (1998 low) and then draws another trend line parallel to it and starting from the Wave 3 top in 1998, one arrives at marginally under Friday's high....Bottom line, there does not seem to be ANY room left for future gains, without first a sizable correction.....As I say, this troubles me, as my stance on the DJ is that it should have room for a marginal new high at least--but how does it get there without GE?--something to think about