Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: HairBall who wrote (50080)	5/17/2000 1:18:00 AM
From: Smooth Drive	Read Replies (1) \| Respond to of 99985

Hello LG, Assume all's well with you and your family. Your overall market composite is looking interesting and I'll put it up soon. The Dow P&F chart is forming an interesting pattern since I last posted it here Message 13623193. It now sets up as follows: 11790.44 11673.71 X + 11558.13 X O + < Bullish Res/Line 11443.69 X O + * < Bearish Res/Line 11330.39 X O + X * 11218.20 X O + X X O * 11107.13 X O 2 + X O X O X * 10997.16 O X O + X O X O X O * 10888.28 O X O + X 4 X O X O X * 10780.47 O O + X O O X O X * + 10673.74 O X X O X O X + * 10568.05 O X O X O X O X + 10463.42 O X O X O X 5 X 10359.82 O O 3 X O X O 10257.25 O X O X O + 10155.69 O X O X + 10055.14 O X O X X 9955.59 O X O X O X 9857.02 O O X O X 9759.4 O O 9662.79 It's currently very close to forming the basic symmetrical triangle pattern, which will either break upward or downward? A P&F symmetrical pattern must have lower highs and higher lows. The current patttern started with the column of X's that peaked at 11330.39. You can see that each susequent column X's has been lower and each column of O's higer. It takes at least 5 columns to create this pattern and the current (last) column of X's is the 5th. If the current column of X's a) breaks through the trendline and b) gives a double top buy signal at 11218.20, then that would be a symmetrical triangle upside breakout, and a fairly bullish pattern. Of course if it reverses down here and a) breaks the lower trendline and b) gives the double bottom sell signal at 10257.25 it's the opposite. The symmetrical triangle is one of my favorites. With the lower highs and higher bottoms there is compression. Reminds me of the blacksmiths billows. The billows size determines the air or push. In my last post on this chart I said it looked like a failed rally. Now - I'm not so sure. Given that the original bearish price objective taken from 11673.71 was met, and the way this pattern is developing, I wouldn't be at all surprised to see a breakout to the upside and a new spring/summer rally. Take care, Eric