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

To: el paradisio who wrote (45807)	4/12/2000 7:15:00 PM
From: TheKelster	Read Replies (2) \| Respond to of 99985

The naked Nasdaq. Considering that most of the run up in the past year has been money directed into companies that had no earnings, but were operating so up-side-down they would qualify as an amusement park ride, it's time to pay the piper. I am wondering if cash flows into the market might start drying up come Monday the 17th. Are the pros getting out this week? No doubt. There is a huge flood of shares just beginning to flow into the market. This river of stock will be several months reaching a crest. Stick your finger in the dike if you want to, I'm heading for higher ground. From a strictly TA point of view, there was a clear continuation gap 2 days ago. Odds are very good we see another tomorrow. Using the daily, weekly, and monthly charts we could start with something in the -100 point range and work our way down to 3500. 3500 is the next level that has any resemblance of support. It is the top of a small window that was created last November. It is also the touch point of the trendline running from last October. Its the bottom of the current channel. It also coincides with the 52 week EMA. Even a rank beginner can understand the MCAD. Below that the next support takes us back to last October. I won't even get into that today. I will point out, because many of the companies issuing stock, since that time, are actually worth very little and are about as substantial as my shadow on the wall, for them go back to near zero, or actually to zero, is not unthinkable. We could go back to the index values in October 99 and still be over-valued. On some days, sooner or later actually shows up.