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

To: J.T. who wrote (1616)	12/1/1999 12:38:00 AM
From: J.T.	Respond to of 19219

The DOW pulled off this "backdoor test" of DOW 10,880 MITA called for and it caught me completely off guard just as I was prepared to go long. Did a double take of both sides of 10,880 and closed below this important critical support level that has been defended numerous times by the bulls. We closed at DOW 10,877. A second close below this level should be not be taken lightly and will signal market direction change when many pundits are looking to go long and have one foot in the door with tail between legs for this Santa Claus rally....aka Favors et al. Could it be that this Santa will not show up and in fact the grinch could have his own party? Could it be that this interest rate problem and Mr. G helplessly behind the curve and there is not a thing he can do about it except issue a "tightening bias" in December and have to wait until February 2 to raise again? As a sidenote, the market loves it when Mr G. can have these FOMC meetings because the market always rallies the day before it through the week after the announcement. It is like clockwork. Then, one to two weeks after the announcement the market turns right back down. We are at that point again in this "cycle" where the market turns back down. This one could potentially be vicious if supports are broken as Bulls are in deeper now than in August at the highs. Well everybody knows that December FOMC is "lame duck meeting" and nothing will happen but loose lips of tightening bias with no bite in the bark. Stay tuned. Tomorrow is very important piece of this puzzling question. Best Regards, J.T.