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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: IndexTrader who wrote (1057)	4/16/2000 3:16:00 PM
From: John Pitera	Read Replies (3) \| Respond to of 33421

Thanks Susan, These Longer term NASD CHarts SHow the Amazing Fibonacci retracement levels that are clustered near 3250, coupled with a very significant trendline. geocities.com this NASD chart shows the 1987 crash and the subsequent price advance. The low friday fell almost exactly at the .382 retracement of the entire advance since the Oct 20th Crash low in 1987. geocities.com It was simultaneously a 50% retracement of the move since the panic decline of Oct 8th 1998. these 2 retracements plus the uptrend line demonstrates, why we had some short-covering and a bit of Long side equity commitment on Friday afternoon. This Log chart is more appropriate to get the feel of longer term trend lines. geocities.com It would be just about a worse case scenario, to have the NASD go to the blue trendline @ 2800. As previously noted we have very strong support @ 2900, this trendline @ 2800 and the 50% retracment of the entire move since the Oct 20th 1987 low, which is at 2700 should really act as unbreakable barriers. I have doubts we see anything this low in this cycle. The DJIA and SPX appear to be too strongly positioned to even get down to 2800. But We'll monitor events and act accordingly. The Market is always right, and we can only monitor the patient and work with the mathematical probabilities. -g- John