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

To: Paul Shread who wrote (28800)	8/31/2000 9:32:40 AM
From: donald sew	Read Replies (1) \| Respond to of 42787

AUG 31 INDEX UPDATE ---------------------- SHORT-TERM TECHNICAL READINGS: DOW - midrange SPX - midrange OEX - midrange NAZ - possible negated CLASS 1 SELL SIGNAL NDX - pending CLASS 1 SELL SIGNAL VIX - 19.21, midrange CBOE PUT:CALL RATIO - .53 The DOW/SPX/OEX confirmed the CLASS 1 SELL signal and the DOW fulfilled the minimum requirement. The issue now is the NAZ/NDX. I had a CLASS 1 SELL signal for MONDAY but has not shown any weakness or at least flatness but has creeped up. Its common that when a CLASS 1 SELL signal is negated the up move should be strong and quick. The NDX is not yet a negated CLASS 1 SELL signal so it is not yet confirming the negated signal in the NAZ. Over the last 4 days in the NDX a RECTANGLE is forming. A RECTANGLE is a chart formation is basicly a flat period. You will also notice that the INTRADAY HIGHS for the last 4 days are within a few points which gives the appearance of a STAIRSTEP. What is important is that a RECTANGLE normally takes the direction of the trend, which in this case is up. If this RECTANGLE is resolved to the upside that would also give a NEGATED CLASS 1 SELL SIGNAL for he NDX. What we may be seeing are hints of SECTOR ROTATION from the DOW back into the NAZ if the overall market does not move to the upside. I may be closing/hedging the short positions for the NDX, but maintain the short positions in the SPX if the NAZ/NDX do not close negative or at least flat today. Yesterday the VIX broke above the UPPER TRENDLINE of the WEDGE on a intraday basis but closed within the wedge, so the wedge is still intact. To say that the wedge on the VIX is clearly broken I would want the VIX to get to the 21-23 range and stay above its upper trendline for at least 1-2 full days. Of course a strong intraday move to the mid-20's would also do it.