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

To: UnBelievable who wrote (57066)	7/23/2000 1:03:47 PM
From: NucTrader	Read Replies (1) \| Respond to of 99985

Jerry Favors analysis marketweb.com >>Friday, July 21, 2000 Last week we mentioned that our work called for some sort of at least short-term high near July 19, plus or minus 1 day. So far the Dow has reached a closing high of 10843 on July 20. Our Cycles call for the next important low in the market to come in near July 26, plus or minus 1 day. From there the Cycles turn up into early August. If the Dow rallies further on Monday there will still be strong resistance near 11000 intraday. We have told subscribers that we expected the Dow to encounter strong resistance to any rally in this time frame near or just above 11000 intraday. So far the high has been 10980 intraday. In our most recent newsletter to subscribers we stated, "One of the best indicators at market tops is the 5-Day Moving Average of Advancing Volume. As long as the Dow and the 5-Day Advancing Volume are both rising to higher highs together you have normally not seen any significant top. When the Dow rises to higher highs, but the 5-Day Advancing Volume does not, then you are normally near some sort of at least short-term high." The 5-Day Advancing Volume peaked on July 13, with the Dow at 10788. The Dow rose to a higher close of 10843.87 on July 20, but the 5-Day Advancing Volume is not even close to its July 13 high, showing negative divergence. This is the sort of divergence common near at least short-term highs. There are other indicators also suggesting we are near at least a short-term high and that some sort of correction is likely next week. Our strategy for now remains unchanged, whether we see somewhat higher prices on Monday or not. We will remain bullish as long as any decline next week holds above 10162 intraday. We will begin raising our long positions and doing new buying for subscribers near the low we expect near July 26 + 1 day. << www.jerryfavors