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

To: OX who wrote (31979)	10/4/2000 12:38:33 PM
From: donald sew	Respond to of 42787

In my last INDEX UPDATE, I mentioned that we have been working on a new indicator which specificly measures divergences. Its broken into 2 basic parts, one for the short-term and one for the mid/longer-term. We are hoping that this indicator will help identify important reversal points, and with the limited backtesting it has a good success rate. Yesterday the short-term version of this indicator stated that the DOW has a minor negative divergence, while the NDX has a minor POSITIVE divergence. The way I interpret that is that the DOW should start to lag the NAZ to the upside for a short-term up move. Right now the DOW is about 30% off of its intraday highs while the NDX and SOX are near their intraday highs, giving the first hint that this new indicator may be working. So basicly this indicator is hinting the possibility of some minor sector rotation from the DOW into the NAZ. It may not be to the degree where the DOW and NAZ goes in completely opposite direction although such is possible, just that the DOW should start to lag the NAZ. On the mid-term version of this new DIVERGENCE INDICATOR, it is still implying that trend should continue. Lets see what it says after this forthcoming bounce.