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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: sa-mule who wrote (4623)	9/22/2000 1:43:04 AM
From: J.T.	Respond to of 19219

sam, there is blood in the water and sharks are circling. However, one needs to keep in mind we are still below oversold levels: DOW 5 day rsi is at oversold 26.29. In MITA post 4,600 on Wednseday I noted DOW hit a 5 day rsi of 5.93 when DOW was at DOW 10,567.- Its most oversold level in the last 2 years. Clearly we have the capability of heading back down to a 5 day rsi of below 10 again tomorrow in the first hour of trading. However, once we get down to the 5 level - again it is saved by zero - we can't go lower than a 0 5 day rsi. lol SPX 5 day rsi is at oversold 27.97. Now SPX never got to DOW triple extreme oversold levels so it is here where we could get down to that 10-12 level 5 day rsi before a goood bounce. Whether the bounce holds for the day is another matter. BKX 5 day rsi is at oversold 25.64 UTIL 5 day rsi is at oversold 26.30 XBD is at 5 day oversold 25.23 XAU 5 day rsi is at oversold 27.17. Gold has followed in euro's downward shadow and I will watch with great interest XAU gold bullion in face of this ruckus. The area that has more downside room to get whacked most is tech: NDX 5 day rsi is at 45.74 COMP 5 day rsi is at 41.49 SOX 5 day rsi is at 39.10 IIX 5 day rsi is at 45.17 MSH 5 day rsi is at 41.48 PSE is at 5 day rsi 42.69 I think you can look for a DOW test of this DOW 10,480 and SPX 1,410 intraday before a bounce can materialize. Where that bounce goes is anyones guess. Now one wild card for us not to get down to these decadent levels would be President Clinton lathering up the Bulls by gradualist approach to tapping into the strategic oil reserves. A worst case scenario is hard selling Friday, then Monday and an intraday bottom on Tuesday and then the hard bounce. Remember, it is the close that counts and SPX has not broken SPX 1,440 close yet although right now the deck is stacked in favor of the break of this key support. This post from MITA 4,610 proved a harbinger: ...<As we get out of the thicket of negative confession pre-announcement period over the next week or so, I think this market can rally back above SPX 1,500 and eventual new highs sooner rather than later. However, if SPX 1,440 close support is violated back to back consecutively, we may have to wait until November or even December to see new SPX highs. And this would prove to be Al Gores undoing in the face of a jittery market into the November elections.>... Could it be the beginning of the end for lights out Al Gore..?? People vote with their pocketbooks and a jittery or downsloping market will not help Mr Environmentalist going into early November election. Best Regards, J.T.