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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (2802)	9/11/2000 8:38:34 PM
From: Chip McVickar	Read Replies (1) \| Respond to of 33421

Dan, There's a lot of congestion between 3950 and 3600, which makes the exact point where the bulls give up very difficult to pick. But the formation is in place. On the way down higher areas are often tighter. On the way up lower areas are often tougher. Today the 50% retracement was more important as support. You are correct a clean read would have the "v" at 8/3 and 3521. This area happens to be exactly on a .618 retrace from 7/17 to 5/25. Look at the low on 12/15/99 and the high on 4/10/00... Really Nice..! But the market just whipped past any support on the way down. Personally, if I were to pick an exact area for a break it would be 3650±, not the clean tip of 8/3. Whatever.., this formation is a signal that the buyers are fighting to keep their gains. If this congested area holds.., the market should go sideways, but it's valuable to know this formation is in place. Lets See What Happens..! Chip