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

To: bobby beara who wrote (49029)	5/2/2000 7:27:00 PM
From: jmootx	Read Replies (1) \| Respond to of 99985

bobby b. I see your point on SUNW. Somebody also posted that the banking index has a head and shoulders top. Today's retreat on the OEX will keep me short there on a trading basis until a retest of 720. Appreciate your comments. jmootx

To: bobby beara who wrote (49029)	5/2/2000 10:27:00 PM
From: KymarFye	Read Replies (2) \| Respond to of 99985

Also noticed the apparent H&S on SUNW--which looks much more pronounced on the arithmetic scale you've used than on a logarithmic scale. Arguably, the H&S has ALREADY formed and been borne out by the gap down and drop around 91--at the neckline. It's possible that both its initial drop and its pullback were exaggerated, and that the further implications of the pattern have yet to be borne out. If the wedge you describe is taking place in the context of the more extended downturn one would expect, then today's drop could be the prelude to another slide taking SUNW, perhaps over a longer period, to the lows it tested just weeks ago, if not further. Its chart is also comparable to ORCL and CSCO, among other leaders which also appear to have topped and are showing potential for accelerating slippage. If leading stocks like these follow MSFT, QCOM, and AOL, even in part, the impact on the Composite average as well as on the psychology of retail investors could be profound.