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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Threei who wrote (10350)	10/4/2000 8:39:28 AM
From: TraderAlan	Read Replies (1) \| Respond to of 18137

Vad, We broke the range of that 4/04 600 point (3600-4200) session 2 days ago. We had spent 84 sessions within it since last June. So we're actually trending right now to some degree. Nasdaq from a distance looks a lot like a simple ABC correction after a bull move. The possible B comes close to a quasi-bear flag which Toni Hansen has a nice illustration today in her After Midnight column: hardrightedge.com A and C often have the same size. Unfortunately that yields a 2200 target on Nasdaq. That would also return the index to its multi-year trendline support. Now I'm not really a bear and hope for a nice bounce at the test of the May low or before. But that 3600-4200 should be strong overhead supply unless we pop back into it the next 1-2 sessions. Also Naz hates completing corrections until after it takes out prior support. Look at the similarities between March-May and late 1998. If the market doesn't have the demand after all the summer action, then March-May might only be the first leg of a larger test. IOW jump back to a weekly chart when this is all over and the recovery might look like 1998's daily chart but on a much larger scale. Of course, if we do go lower, it might freak people out but consider that price was 4 standard deviations ABOVE Nasdaq's 200-day MA last January. As they say, the bigger the move, the broader the base. This can all still be a countertrend correction within large bull market. This rally started at Naz 1300. It's all relative ;-) Alan