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Strategies & Market Trends : Ask DrBob -- Ignore unavailable to you. Want to Upgrade?

To: HairBall who wrote (39736)	7/12/2001 2:38:25 PM
From: exeric2	Read Replies (2) \| Respond to of 100058

Just my 2 cents, Dr Bob knows more than me. I tend to think of any retracement greater than about 62% makes the previous trend suspect. Right now we've retraced about 50% between the previous July 2 high and the July 11 low.

To: HairBall who wrote (39736)	7/13/2001 2:14:47 AM
From: Drbob512	Read Replies (1) \| Respond to of 100058

LG: A technical rally is sometimes defined by various retracement percentages. Some use the fibonacci retracement of 61.8%, because if it retraces more than that, it usually means that it is not just a correction but a trend reversal. Sometimes a technical rally retraces around 50% or 38.2% (fibonacci numbers). The Nasdaq has come down from 2328 to 1934 intra-day, so it it rises above 61.8% of that spread, then some would consider the technical rally interpretation invalidated. While we have rallied from 1619 to 2328, we have also declined from 5132 to 1619....