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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: J.T. who wrote (1197)	11/3/1999 5:07:00 PM
From: Matthew L. Jones	Read Replies (2) \| Respond to of 19219

J.T., >>> BKX closed at BKX 861.76 and near session lows. This index for me outweighs the other two above in calling short term change in market direction which could manifest into a much larger change in broad market direction. BKX closed decisively below BKX 866 support.<<< I am curious as to the reasoning behind this call. Don't get me wrong-- I'm not challenging it, just curious. Here's why: On the BKX.X day chart I see support as follows: 10 EMA @ 842.60; the weekly low of 849.50; 20 SMA @ 798.42; and the 50 SMA @ 783.11. These are well above the recent intermediate lows of 709.54 set on October 15. On the 60 minute chart we are currently sitting on two key support levels: the 50 SMA @ 858.12 and the lower Bollinger band @ 859.98. Additionally, the 60 minute Stochastics are extremely oversold at present (below 5%). My read would be short term (1-2 days) bullish to a level of 890-92 retest of recent high (November 2) and longer term (1-2 weeks) somewhat bearish with a maximum downturn to around 820-25 (an extension of the weekly chart 50 SMA trend). Obviously, this is just another guy's take on the market. I am also curious as to why you see the Bank index as leading indicator. This is very interesting. Looking forward to your comments. Matt