To: J.T. who wrote (2153 ) 12/30/1999 11:08:00 PM From: J.T. Read Replies (1) | Respond to
DOW/SPX REVIEW: Tie up loose ends: The Backtest:DOW resistance is really DOW 11,310 and if we take this level the old high DOW 11,326 will be left in the dust as roadrunner beep beep bull will smell blood and fear of loss sets in and the fuel will be set to the fire for this updraft. DOW 11,390 first new upside virgin territory. DOW 11,550 is second virgin blue sky >... MITA had clearly established after old DOW 11,326 high was taken out, that it would gravitate to DOW 11,390 first resistance. On December 23 and 27th, the two consecutive trading days before and after Christmas, the DOW zeroed in on this range to close at DOW 11,405 and DOW 11,391 respectively. DOW 11,390 target achieved.MITA labeled DOW 11,550 next resistance level and notice the last two days how it has come into play: First, Wednesday we hit an intraday high of 11,543 and today we hit an intraday high of DOW 11,568 and turned back a second time. With today's higher intraday high and subsequent lower close vs yesterday, it is safe to say that tomorrow DOW will probably be down and time to shortly test some new supports in the coming days. Santa lives as we get the rally to close at a new all time high at DOW 11,405.76 and above this first DOW 11,390 resistance level thoroughly discussed. MITA 1,916 has next resistance target at DOW 11,550 and we are capped at DOW 11,665 for highs for year-end. For new highs to carry forward, we need to have second close above DOW 11,390 combined with this second close BKX above BKX 774. Today BKX closed at BKX 774.22 - minimum right above 774 level previously discussed >...--------------------------------------------------------------- DOW PROJECTION: For the next two days: Look for the DOW to test DOW 11,320 support over the next two trading days. --------------------------------------------------------------- This SPX 1,433.30 close on December 3rd is going to be tough to muster more than 3 closes in a row. We have built this "BRICK WALL" of overhead supply in this resistance zone. Note also theoretical high of SPX 1,447.42.I believe we can have potentially fragmented one or two closes at or above this area, but we are really capped out around SPX 1,465 maybe one close above this level >...------------------------------------------------------ SPX PROJECTION: Look for the SPX to test support of SPX 1,440 support over the next two trading days.
