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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Challo Jeregy who wrote (28111)	8/21/2000 11:59:59 PM
From: donald sew	Respond to of 42787

AUG 22 INDEX UPDATE --------------------- SHORT-TERM TECHNICAL READINGS: DOW - midrange SPX - CLASS 2 SELL signal OEX - CLASS 2 SELL signal NAZ - CLASS 2 SELL signal NDX - CLASS 2 SELL signal VIX - 19.56, CLASS 2 SELL signal, inverse to market CBOE PUT:CALL RATIO - .48 One interesting development today was the weakness in the SOX(semi-conductors). Although the NAZ and NDX were up slightly, the SOX was down 23 points(2.05%). The reason I feel that this is important is that the SOX led the HiTECHs downward during the previous strong pullback that started in mid-JULY. Could the weakness in the SOX, if it continues, be a reason for another strong pullback in the HiTECHs. Therefore, the SOX needs to be watched carefully for further weakness. It was not surprising to see flatness in front of the FOMC meeting. If there is a a rally after the FOMC announcement I still feel that such rally will not be strong, and we may even be a situation of "SELL on NEWs" where there may be no rally at all. Although my short-term technicals are a day or two away from a short-term top(class 1 SELL), I am not expecting an extented/stronger selloff until early SEPT. So Im suspecting that the forthcoming short-term selloff to be fairly weak maybe lasting 3-5 days and which may take the ZIG-ZAG form with a downward bias. Then a weak end-of-month rally into early SEPT, then the selling could intensify. No Im not calling for a huge selloff, but it could possibly get a bit strong for the HiTECHs, especially if the SOX cannot maintain strength. Lets not forget the BEARISH WEDGES forming on the SPX/OEX/NAZ/N