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

To: Dan Duchardt who wrote (35271)	11/10/2000 7:15:08 AM
From: donald sew	Read Replies (4) \| Respond to of 42787

NOV 10 INDEX UPDATE ---------------------------- Short-term technical readings: DOW - midrange SPX - midrange OEX - midrange NAZ - lower midrange NDX - lower midrange VIX - 29.54, upper midrange(inverse to market) PUT:CALL - .78 With my short-term technicals in the midrange for the overall market, its back to "FLIPPING-the-COIN" territory. With the indecision of the presidential election, which now could last until next week for the mail-in ballots or longer, we may get an extended period of indecision in the market, where we could see alot of DOJIs and ZIG/ZAGs. That doesnt mean that it cant be volitile ZIG/ZAGs. With this period of indecision, Im suspecting that my specific short-term technicals may not give a clear BUY or SELL signal. There were bearish and bullish developments yesterday. The strong intraday selloff did cause the SPX and NAZ to pierce minor trendlines to the downside and in the NDX a LOWER LOW was produced. Previously, I mentioned the DESCENDING TRIANGLE in the NDX where the LOWER HORIZONTAL SUPPORT was at 3000. That support of 3000 was clearly pierced to the downside intraday when the NDX got as low as 2923. One could argue that it was an overshoot of the 3000 support, but 77 points is a bit too large. I feel that it was a CLEAR break of the 3000 support line. Although from face value it sounds very bearish, I'm actually turning somewhat less bearish/more bullish. What was once a DESCENDING TRIANGLE(BEARISH) may now be morphing into a DECLINING WEDGE, which is BULLISH. Dan, thanks for noticing it. On the follow chart, connect the lows of OCT 13,18,26 and NOV 9. which would form a slight descending trendline. Maintain the upper declining trendline and thats a possible BULLISH WEDGE. stockcharts.com[H,A]DECLYNMY[DB][P][ILA8,21,9] Here are some factors which could support my belief that the DESCENDING TRIANGLE is morphing into a BULLISH WEDGE: 1) The NAZ NEW LOWs only dropped to 190 yesterday. On OCT 12/13, when the NDX tested 3000 the NEW LOWs were in the 450-500 region and the during the subsequent retests of 3000 on OCT 18,26 and NOV 9(yesterday) the NAZ NEW LOWs were only in the 150-190 region. I am interpreting this as a POSITIVE DIVERGENCE. 2) The MACD on the NDX is still producing HIGHER LOWs. Check the same dates of 10/13, 10/18. 10/26, 11/9 where on each of those dates the 3000 support was tested but on the MACD the corresponding troughs were higher(HIGHER LOWs). Thats another POSITIVE DIVERGENCE. 3) Thirdly, the NAZ did not produce a LOWER LOW when the NDX did, so the NAZ is not confirming the LOWER LOW in the NDX. This doesnt mean to go wildly bullish yet either. As mentioned previously, I was expecting a 1-2 day bounce to start THUR/FRI and with all the major indices significantly rallying off of their intraday lows yesterday, I believe that the 1-2 day bounce started. Just hoping that yesterdays rebound off the lows was not the whole bounce. My mid-term cycle analysis has a cycle low on NOV 21(+/- a few days). LEE has a CYCLE LOW towards the end of NOV/early DEC. Thats getting close. Im suspecting that the NDX could retest this LOWER TRENDLINE of this BULLISH WEDGE in this time frame. From eyeballing it, this lower trendline could be around the 2850-2900 region in such time frame. If there is another retest during that timeframe and there still exists the POSITIVE DIVERGENCES in the NAZ NEW LOWs and the NDX MACD - I would consider that a FIRM BUY SIGNAL and that an IMPORTANT BOTTOM was formed. With the uncertainty of the presidential election, we could get that RETEST. Also on the BULLISH SIDE, lets not forget the "3-WHITE SOLDIERS" on the DOW and the BTK. They have not yet been negated, and as mentioned previously the "3-WHITE SOLDIERS" is a powerful candlestic formation and has longer lasting effects than most other candlestic patterns. The same goes for the "3-BLACK CROWs" in reverse as many have recently been orientated to their reliability and intensity. DONT mess with my 3-WHITE SOLDIERs or 3-BLACK CROWs. ggggggggg

To: Dan Duchardt who wrote (35271)	11/10/2000 7:33:07 AM
From: Roebear	Read Replies (1) \| Respond to of 42787

Dan, Would you or anyone else have a favorite chart site for charting non US indices? Thanks, Roebear