Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: marc chatman who wrote (23208)	5/19/2001 6:58:01 PM
From: marc chatman	Respond to of 37746

IMO, the averages may be setting up for a peak on Monday, May 21. I see bearish MACD divergences on the COMPX and NDX daily charts and, potentially, the hourly charts as well. I also see some bearish divergences forming on certain stochastics counts. From a wave perspective, it appears to me that the NDX and COMPX are completing wave C of the corrections off the bottom (currently in wave 3 of 5 of C of 4, to be specific). As for the DJIA, I believe it is in wave 3 of 5 of 1 off the March low. I feel the COMPX may rally about 50 points or so Monday and then begin a move down to new lows (probably taking about 4-8 weeks) to complete 5 waves down. At the same time, I would look for the DJIA to retrace a portion of its rally, and I'd be looking at fib retracement levels as possible targets. Note that a 50 point rally would take the COMPX to the 2250 resistance level, which is also near the upper Bollinger Band. Also be aware that these divergences can be overcome by powerful rallies, so there is always a risk in playing them for a reversal.