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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Vitas who wrote (70326)	2/24/2001 9:46:26 AM
From: HairBall	Read Replies (1) \| Respond to of 99985

Vitas: Long time no post. Even though I prefer to track the NASDAQ Comp and the NYSE Comp the S&P 500 chart is proving to be interesting… My End of Day – Combination (US Discount Rate, US Dollar, Gold/Silver Index, 30Yr Bond Rates, S&P500) Weekly Semi-log Chart The 1200 area is in the area of the July 98 highs as well as a little above the 233 week moving average (1151). An average not breached by the S&P 500 since beginning its ascent in 82, although it came close in 1987 and even closer in 1990. Note the 82 Rising Trading Channel, the price action moved above it in 87 to only rapidly correct back inside that same year, then again in 98 only to move above it again in late 98. As the Index tracks the NYSE more closely than the NASDAQ, it has traced out more of a rounding top re-entering the rising channel in Nov of 2000. I would look for the 1200 area coupled with the 233 Week SMA to provide enough support to at least accommodate a NAZ counter trend rally. However, if 1200 fails to provide support the 98 correction lows would be a reasonable next target as this would mean the NYSE Comp is breaking down. If so, the decline would be punctuated by support along the way at roughly the 1060 and 1000. Definately an area to keep an eye on. marketdirectionanalysis.homestead.com Regards, LG