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

To: Les H who wrote (55386)	6/26/2000 8:50:00 PM
From: Les H	Read Replies (1) \| Respond to of 99985

WHAT TO EXPECT NOW. June 26, 2000 ORD Friday, the September S&P's broke to a new recent low below the June 13 low on volume of 854 million shares. The June 13 volume was 919 million shares. A break below a previous low on lighter volume is a bullish divergence. Today in candlestick charting on the September S&P's a bullish "Midpoint Harami Line" was drawn. This pattern suggests the market should reverse back to up for the short term. The "5 day ARMS" on the NYSE closed today at 5.15, which is neutral. A closing down tick of minus 650 was recorded on Thursday and a minus 89 on Friday. When two days of closing downtick readings exceed minus 600 a short-term bottom materializes near 70% of the time. The S&P's may bounce from here but it appears the bounce will stay and be apart of the sideways consolidation that has been going on since the June 2 high. No new trades on the S&P's for the moment. We are short the Nasdaq Composite from 3936.86 on the June 22 close. On June 22 the Nasdaq Composite did draw a "Bearish Engulfing" pattern. "Bearish Engulfing" patterns highs are frequently re-tested and once re-tested turn into a resistance area. The High on June 22 on the Nasdaq Composite was 4073.73 and should be stiff resistance. We still believe the Nasdaq Composite will go down and fill the gap at the 3580 level at a minimum but first could make a minor bounce to as high as 4070 level before the 3580 area is tested. We are staying short the Nasdaq Composite with a downside target near the 3580 level. ASA (gold stock symbol) appears to be drawing a right shoulder of a bullish "Head and Shoulder" bottom. If ASA goes up, so will the gold index XAU. We are long the XAU. Have a nice day. marketweb.com