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

To: J.T. who wrote (1776)	12/7/1999 4:40:00 PM
From: fut_trade	Read Replies (2) \| Respond to of 19219

...to get a huge two to three day sell-off... Good trading to you. I need to study my charts further, so I'll just continue to watch from the sidelines. Technology is still solid. ...BKX, UTIL, TRAN are crashing I'm sure that's what took out SPX 1425. The Nasdaq 100 (an alter ego of the SPX) is the only thing supporting it now. Standard & Poor's beefed of the SPX smartly the last six months. Now it will be adding inet companies -- my guess RNWK will be added sometime soon.

To: J.T. who wrote (1776)	12/7/1999 10:27:00 PM
From: LBstocks	Read Replies (1) \| Respond to of 19219

Fed's Parry Sees Few Signs Growth Waning NEW YORK (Reuters) - Federal Reserve Bank of San Francisco President Robert Parry joined a growing chorus of central bankers on Tuesday who see scant signs that the tremendous momentum of the U.S. economy is waning. Parry also observed that some of the forces which had helped keep U.S. inflation in check in recent years appear to be reversing. ``The economy, at this point, is still not giving definite evidence of significant slowing,' he told journalists after speaking to the Long Beach Chamber of Commerce in California. Those themes echoed comments by several high-ranking Fed officials in the past week which indicated lingering concerns within the central bank that inflation pressures will build unless the breakneck pace of U.S. growth moderates. Fed Governor Edward Kelley was quoted by a newspaper at the weekend as saying growth remains very strong and he sees only tentative signs of slowing. And Fed Governor Laurence Meyer said last week the nation's unemployment rate is already so low, any further drop would justify higher interest rates to curb potential inflation. Fed chairman Alan Greenspan also spoke Tuesday but did not discuss the immediate economic outlook or interest rates. Wall Street is already betting the Fed will raise interest rates again in the first quarter of next year, given persistent economic strength and signs inflation is creeping higher. The Fed increased borrowing costs for the third time this year in mid-November, bringing the fed funds rate on overnight interbank lending rate to 5.50 percent. With East Asian economies on the mend from the recent financial crisis, Parry said some factors that have restrained domestic inflation appear to be turning around. Falling commodity prices and ample industrial capacity related in part to East Asia's problems in 1997-98 had helped keep a lid on domestic inflation during a time of very robust growth and low unemployment, he said. ``As those economies recover and their demand increases, conditions seem to be reversing somewhat,' said Parry who will be a voting member of the Fed's policy-setting Federal Open Market Committee next year. Wage inflation appears to be under control but could accelerate if labor markets tighten further, Parry warned. In an interview published over the weekend, Kelley told the business newspaper Barron's the potential for tight labor markets to boost inflation remains a major concern at the Fed. ``Everything I see on balance tells me there's still a lot of momentum present in the economy,' he said. One major force keeping inflation in check a surge in productivity may prove to be more long-lasting than the events overseas, but it is too soon to tell, Parry said. ``The major uncertainty (in the economic outlook) is whether the upsurge in productivity we have had will last,' he said. The Labor Department released revised data on third-quarter productivity which showed output per hour of workers outside the farm sector rose 4.9 percent at an annual rate, the fastest pace in nearly seven years. It was revised up from 4.2 percent. Parry said productivity could grow 2.5 percent annually in the next year or two and he estimated the potential rate of noninflationary gross domestic product growth at 3.5 percent. There seems to be a growing consensus at the Fed around these numbers. Parry predicted a modest slowdown in growth from ``the very rapid rates of recent years' with continued low inflation. But he noted the economy had been growing faster than the Fed expected for nearly four years and could do so for a fifth. GDP grew at an annual rate of 5.5 percent in the third quarter but should slow from that red-hot pace in the final quarter, Parry said. Turning to the concerns over year-end computer problems from the so-called Y2K bug, Parry said he doubted the issue would have much impact on monetary policy. Chicago Fed President Michael Moskow, in a separate speech Tuesday in Chicago, urged the public not to overreact by withdrawing large sums of money from bank accounts because of fears of massive computer failures at year end.