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To: mishedlo who wrote (8172)12/28/2000 9:32:41 PM
From: Walkingshadow  Read Replies (1) | Respond to of 13572
 
Mishedlo,

I think what you're seeing is a gradual downturn for all the moving averages, and crossovers as they do so. Thus far, the 10, 25, and 50 day SMA's have done so. The 100 day SMA looks like it will follow suit, but that's probably a few weeks away.

stockcharts.com[L,A]DBCLNYMY[DB][PB25!B50!B100!B200!B10!F][VC60][IUC20!LB14!LF!LG!UA12,26,9!LJ[$SPX]]

It is interesting that the 10 day SMA was turned back right at the 200 day, but you have to realize that the 200 day SMA is "out of place", in the sense that it is lagging behind and is below both the 100 day and 50 day SMA. That's simply a result of the fact that the 200 day (and 100 day) SMA has not yet turned downwards, but when it does, you will see from top to bottom a more orderly arrangement, i.e., 200 day, 100 day, 50 day, 25 day, 10 day. I would not expect the pattern you noted repeat, possibly unless JNPR entered a consolidation/basing phase.

I think the main thing to note is that these moving averages are all crossing over and turning down bearishly, and when the stock rallies to the area of these moving averages, they will exert considerable resistance. That's why its a good place to look for an entry for a short position.

JMVHO................

WS