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

To: J.T. who wrote (2074)	12/20/1999 9:28:00 PM
From: J.T.	Read Replies (2) \| Respond to of 19219

BKX UPDATE: Monday, Dec 20th. With today's close, we have now locked in this second close below BKX 752 to finish at BKX 745.09 after Friday close of BKX 749.05. Interpolation city with the #'s - confusing as the market's bipolar personality. To make matters worse, today we get this first close above bond yield 6.4% MITA has established as demarcation line to turn back BEARISH with BKX confirmation. We closed at bond yields of 6.428%. This will become crystal clear very shortly as MITA has previously posted that Mr. G and the Fed is desperately behind the curve and helpless until Feb 1 and 2 with economy hitting on all cylinders and consumer spending spree showing no signs of abating. The buzz will be a 50 basis point increase shortly to play catch-up unless the equity market self corrects these excesses by more than 10% and a flight to quality materializes. Fed move to "tightening bias" tomorrow is like a cat with no claws. No defense mechanism against perceived threat and hence trying to jawbone the market now is like marginmike's 'whistling in the graveyard'. Whether we have any last santa rally or not now is immaterial and irrelevant. An additional 3% in the DOW from 11,144 is DOW 11,400 - Who Cares. 3% higher from all time highs is DOW 11,665. This is now the top for '99 best case scenario. The risk now outweighs the reward and interest rate sensitive issues like BKX and UTIL are capped out of any material gains until after February. New resistance is now BKX 750 followed by BKX 760. Two closes above BKX 774 will give us this chance for new DOW highs and DOW 11,665 by year-end - a remote possibility but one that exists nonetheless. New support is BKX 737. TWO CLOSES AT OR BELOW BKX 705 AND A SHARP INTENSE BROAD MARKET SELL-OFF WILL IMMEDIATELY ACCOMPANY THE BKX FALLING HOUSE OF CARDS. FIFTEEN TO TWENTY PERCENT BROAD MARKET CORRECTION ACROSS THE BOARD. Best Regards, J.T.