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

To: Les H who wrote (53194)	6/6/2000 3:31:00 PM
From: Les H	Read Replies (2) \| Respond to of 99985

Three Gap Play Culminating in an Exhaustion Gap WHAT TO EXPECT NOW. June 5, 2000 Timer Digest (203) 629-3503 has us ranked The Ord Oracle #3 in performance for 1999. A bearish candlestick pattern called a "Three Gap Play" formed on the June S&P's. The first gap formed between May 26 to May30 near the 1380 area. The second gap Formed between May 31 to June 1 near the 1425 level. The third gap called an "Exhaustion Gap" (which marks the end of the move up) formed from last Thursday's close to Friday's open. A "Three Gap Play" predicts the market will turn around and fill all three gaps ending with the first gap near the 1380 area. That is our downside target for the next low. We like to point out that there where high uptick readings every day last week that reached above plus 600 and Friday a Plus 917 were recorded. Uptick readings exceeding plus 600 are bearish for the near term. Once our downside target near the 1380 level is met, we are expecting a strong rally to begin from that level and should take the S&P's to new highs. We will cover that scenario later. For now we will hold our short position in the SPX for a downside target near the 1380 level. For the very short term the NDX did appear to draw a "Three Gap Play" also. However the daily candlestick patterns have not drawn a bearish candle to confirm the "Three Gap Play". The "5 day ARMS" on the Nasdaq closed today at 3.02. Readings near 3.25 and below appear near short-term tops. We are staying flat the NDX. Our first upside target on the XAU is near the 70 level. We are still long this index. marketweb.com