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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Lucretius who wrote (2441)	7/6/2000 7:49:54 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 436258

the opposite is true...the more often a line of resistance or support is tested, the more likely a break becomes. but the devilish thing about triangles and/or rectangles (see the VGY) is that BOTH support and resistance get tested numerous times...so the direction of the break is perforce not predictable. and the problem is, the ancillary technical indicators give conflicting signals as well... how about we break in one direction and it turns out to be a false break after a week or two? that would be the most diabolical outcome...

To: Lucretius who wrote (2441)	7/7/2000 7:39:16 AM
From: AllansAlias	Read Replies (1) \| Respond to of 436258

There is no question that the Dow triangle is tightly coiled now. Yesterday's dogi argues somewhat for an important break today. However, there could be substantial movement up that could still be bound by the containing diamond. The measured move is about 1000 points. But if we go much further into/through the apex, this becomes more unlikely. The NYA triangle is a sort of a mirror reflection of the Dow triangle and argues for resolution downward. SPX/NDX have built small H&S-like patterns above a shelf of hard support. In the case of the SPX, the shelf was predictable. The NDX level seems contrived (i.e., driven by other factors such as the SPX pattern). My read is that there remains excellent downside potential, while upside will would be limited and lead to new ranges. I do not care which way it goes :) --Allan