To: IQBAL LATIF who wrote (31182 ) 4/14/2000 7:53:00 AM From: IQBAL LATIF Read Replies (2) | Respond to
Old resistances become new supports if you look at this SP00M chart you would find that where we sit now was the resistance of the market in Feb 7 area, if we continue to violate this support as I have expressed in my earlier post we may test this area of 1425 support, however a breach of 1425 will lead us 1380 or 1350 area, if we hold this support at 1458 (that I expect) if CPI is in line, or even if it not the sell off is now viewed positive for a slow down of the economy, we may see a strong CPI a sell off to 1442 or 1425 area and a bounce back to 1458 and a close above that.quote.com whichever side as Hemant has pointed out also it will break it will be a violent break, now with old economy and bkx doing fine I don't see much of problem in seeing DOW coming out of this wedge with flying colors that would mean a bottom of MSFT at 75 may be Jan 99 low, this is a good possibility as most of the DOW stocks are looking upwards not downwards, it needs a new story for GE and bkx and GM or HON to break as that is not on the scene and Nikkei even last night recovered from tech sell off I expect that DOW will break on hte upside not the downside as interest fears will subsude due to widening spreads, lower market the right secotrs has been hit, I use to in last month talk about the wrong secotrs being hit, now the selling has been even in my opinion we were in DOW bear market last month at 9700 but the pain was not felt as Comp and IIX added silver lining to everyones pockets it is going to be difficult to make money 100% on DOW but the preservation in a downturn like this is also a very big cap if one can get it.. fwiw
