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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (42624)	3/9/2000 2:31:00 AM
From: Dwight E. Karlsen	Read Replies (1) \| Respond to of 99985

Les, that was written on Sat., March 4th. He was certainly wrong on the DJIA, and the S&P 500. Read his prognostication: "First overhead resistance for the Dow is at its 21 day m.a., currently at 10,450. That's just 80 points above this week's close. If it can break through that resistance in the next few days, the moving average itself will turn back to the upside and become potential downside support for still further rally. If that happens, we will shift to the intermediate term charts and intermediate term support and resistance levels. We do believe it will happen, as a break out back above the 21 day m.a. would still leave the market and the indicators short term oversold. More correctly, it would leave the Dow and S&P 500 still short term oversold. [What happened is on Monday and Tues., the DJIA dropped ~550 pts. Couldn't have been more wrong.] The NASDAQ is a different story altogether. More on it further on. As shown on the following chart, the S&P 500 has broken out very nicely back above its 200 day m.a. And today it closed right at its next overhead resistance, at the trendline resistance line drawn between its recent two lower highs. Its interesting that with the market's big rally this week the Dow is just 80 points short of testing its first overhead resistance at its 21 day m.a., while the S&P 500 is right at its own next overhead resistance. We expect it will also succeed in breaking out above that resistance over the next few days, as the short-term indicators are still oversold." [What happened is on Mon. & Tues., the SPX dropped ~62 pts. Couldn't have been more wrong.]