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Strategies & Market Trends : Stocks Crossing The 13 Week Moving Average <$10.01 -- Ignore unavailable to you. Want to Upgrade?

To: Jibacoa who wrote (9044)	6/15/2001 1:32:32 PM
From: James Strauss	Respond to of 13094

Bernard: A look at the 2 year chart of the Nasdaq shows the succession of lower highs and lower lows... bigcharts.com 2900 remains the breakout point to exit the Bear Market... 2100 remains the intermediate term breakout point for a trading bounce within the Bear Market... bigcharts.com 2100 is now overhead resistance with a series of resistance points through the 2250 area... The momentum on the one month chart is clearly negative, suggesting further downside... bigcharts.com A dramatic panic selloff leading into the FED meeting in two weeks would set the stage for a surprise 1/2 point cut to spark a rally off the possible 1600 double bottom area... The question now is will that rally have legs or be just another bounce in a downward spiraling Bear Market... Given the high 4 week unemployment average and lower retail sales we could be heading for a more protracted slide in the economy as consumers pull in their wallets and purses closer to their hip... Housing numbers, while still good, are now beginning to suggest that it's taking longer for them to sell... This usually precedes a deflationary housing price cycle... The Trillion Dollar Question is whether or not the rate cuts will be stimulative enough to the economy to overcome the huge inventory problems many companies have... It's going to take a lot of consumer demand to create a need for all that excess inventory... All attention should be focused on how to create the type of demand that works its way through the economy so that excess inventory can be used... Jim