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To: yard_man who wrote (61805)	1/25/2001 4:56:41 PM
From: UnBelievable	Respond to of 436258

We Keep Saying That The Market Is Totally Crazy, A Mania Bubble and then we continue to be surprised when it does not act rationally. I think I'm beginning to understand the problem. Anyway by way of explanation - $INDU fell out of its rising wedge between the fourth and fifth 39 minute candle yesterday. When it re-entered the wedge this morning, it was quickly rejected. Entered on the 10:03 3 minute candle and reversed strongly on the 10:06 candle. It ran along under the wedge and made a second, and a bit more successful attempt actually entering the wedge at 13:09 but it was stopped by horizontal resistance at about 10730 where upon it began to retreat and broke down from the wedge at 13:48. Or as Heinz said about a similar comment I made yesterday about $COMPX, "I guess that means it broke down from a rising wedge and will resolve the way rising wedges resolve". While it was making noise like it wanted another shot at the wedge the horizontal resistance at 10730 that did it in today will be below the wedge Monday. It should get some TL support or bounce at about 10670. $SPX fell out of its wedge (which began on 1/8 in the afternoon at about $SPX 1276)this Tuesday but re-entered it on Wednesday. It broke down again today on the 2nd 39 minute candle and promptly feel to just about the day's low. It tried to re-enter for most of the morning until at 13:03 it had to give up and it fell back to 1357 during the last three 39 minute candles of the day. So if $INDU and $SPX are reading the same charts as I am they should continue the process of breaking down on Monday. They both have shown that they like it within the wedge so more attempts to regain them can not be precluded.