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

To: dawgfan2000 who wrote (6760)	5/2/2001 2:24:15 PM
From: Terry Whitman	Read Replies (1) \| Respond to of 52237

Good points. Certainly a high from, say 56 wks ago is still significant, maybe more so than the 52 wk high. With Dow theory, we look for a high confirmed by both INDU and TRAN. The TRAN hit a 52 wk high in early Feb., but it was far short of the all time high. The INDU have yet to do either. A new INDU 52 wk high would confirm the TRAN 52 wk high- That is why it is significant in this case. It does not lessen the significance of a new all time high. A new all time high would be an additional confirmation in the INDU case. For best confirmation, the TRANs should soon be hitting new 52 wk highs also. And yes, psychology (mass psychology in particular) to me, is probably the most important factor in figuring out the markets. Good Luck- and feel free to question all you want. I may not have all the answers, but I can always make one up. <bg> from Briefing.com: >Nasdaq 2255 is significant from a few different standpoints: 1) it approximates the January low (2251) which at that time served as support and has now turned to resistance and 2) it approximates a couple key retracements off downtrends from February and November highs. Traders are wary of this level from both sides of the trade. This is likely to be significant overhead for the index to work through which may make buyers hesitate to step in near resistance. Sellers need to be wary as well however, as a break over this key level could open the floodgate as it would more solidly signal a trend reversal.<