Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Gary D who wrote (10270)	10/7/2000 3:54:56 PM
From: Math Junkie	Read Replies (2) \| Respond to of 42834

Gary, it is impossible for the index to "penetrate" its 52-week low line, because as it gets lower, new 52-week lows are set, dragging the line down with the index. It is important to note those cases where the index, and the 52-week low, continued to go down together after they touched, because that would represent a premature buy signal, if that's the way you're trying to use it. This happened in three out of the four cases shown on Larry's chart, with the drops in 1987 and 1990 being nearly 20% after the lines touched.