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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (25653)	7/21/2001 4:09:13 PM
From: James Strauss	Read Replies (1) \| Respond to of 29382

Pring in "Technical Analyses Explained" page 325-326, explains that every bottom (or top) in the S & P 500 going back to 1950, with one exception was forecast by ROC of interest rates. Sergio: As we look back at past bottoms we can see various indicators that flashed the end... The problem is that you usually don't get a clear picture until you have gone beyond that point and can look back in retrospect... In this Nasdaq chart of 1987 you can see the MACD and Momentum Histograms with extreme readings below the zero line at the bottom in October... But, it wasn't clearly evident until the December test of the lows showed less extreme readings below the zero line... Note how the Nasdaq didn't move above the 13 day MA until mid December... chart.bigcharts.com There is no doubt that a reduction in interest rates will have a beneficial effect on equity prices sooner or later... This year it's happening later... : > Jim