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

To: Boplicity who wrote (78467)	6/12/2001 9:28:15 AM
From: bobby beara	Read Replies (1) \| Respond to of 99985

Message 15928676

To: Boplicity who wrote (78467)	6/12/2001 7:10:42 PM
From: KymarFye	Read Replies (2) \| Respond to of 99985

"I'm waiting for the neckline, it's almost to pat though." Seemed like we were penetrating it this morning - and then, not to underestimate the impressiveness of the rally from the brink of disaster, a massive short squeeze ensued. Initially, TA traders, momentum opportunists, and weak hands got together on the gap down and continued weakness, and came very close to tipping the index over, but, as so often occurs, as soon as the initial waves of selling were exhausted, short-sellers became vulnerable to a powerful reversal that in turn gathered force as much the same group jumped on the new bandwagon. But the drop-off heading into the close and the failure to hold the move into positive territory suggests to me that the struggle is far from decided. As of today, it's still a stalemate: Down is still too low, and up is still too high. Though the session was strong enough to cause some doubt, I think the remains toward continuation of the previous direction - down ("on-neck line"). The alarm bell would be movement below today's low, confirming penetration of the trendline/neckline.