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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (37426)	5/31/2001 10:27:37 PM
From: Dealer	Respond to of 65232

From Donald Sew on Stock Attack thread: From: donald sew Thursday, May 31, 2001 6:27 PM View Replies (2) \| Respond to of 8342 MAY 31 INDEX UPDATE --------------------------- Short-term technical readings: DOW - oversold, PENDING CLASS 1 BUY, imperfect INVERTED HAMMER SPX - oversold, PENDING CLASS 1 BUY, imperfect INVERTED HAMMER OEX - oversold, PENDING CLASS 1 BUY, imperfect INVERTED HAMMER NAZ - oversold, PENDING CLASS 1 BUY, imperfect INVERTED HAMMER NDX - oversold, PENDING CLASS 1 BUY, imperfect INVERTED HAMMER SOX - oversold, PENDING CLASS 1 BUY, imperfect SPINNING TOP The overall market is in the oversold region, and with the market closing positive it is hinting that the CLASS 1 BUY SIGNALs should work. The market rallied strongly intraday, but by the close the major indicies gave up more than half of the intraday gains. Some may consider that as being bearish; however per the CANDLESTICs such is a common occurance at reversal points. Such formation is called an INVERTED HAMMER where there is a small body with a longer upper shaddow and no lower shadow. The major indices gave imperfect INVERTED HAMMERs - they are imperfect since they should have been a bit longer and in some cases the UPPER SHADOW was less than 3-times the length of the body. Regardless, it is a hint that the reversal may have started. Im not saying that the market will rocket or immediately move straight up, just that a short-term bottom may have formed. It could take a few days of minor oscillations before the significant move starts, or it could happen immediately. This possible short-term bottom is intact as long as yesterday's low(CLASS 1 SIGNAL) DAY) is not significantly broken to the downside (>50 NDX points). Yesterday, I mentioned that a significant negative developed when the SOX set a LOWER LOW and that the forthcoming rally may not be that strong in that it the SOX may not set a HIGHER HIGH. What was interesting was that the SOX today was stronger than the NAZ/NDX. I feel the key to the direction and intensity of the move in the NAZ/NDX is the SOX. So if the SOX continues to improve - that would be bullish and vice versa. Im not predicting, just saying to watch the SOX.