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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (22333)	8/2/2001 12:43:17 AM
From: Mike M	Read Replies (2) \| Respond to of 30051

Historically, I am not sure the actual level is important, but rather the direction. You were referring to the VIX but could easily have been referring to the Dow. We can all find plenty of evidence to justify where we think the markets are heading. Predicting a turn around from existing momentum isn't easy and the momentum is currently up and not showing signs of turning. but I could also post a very long list of factors on the bullish side as well. Right you are! Case in point: excerpts from Jerry Favors Analysis today: From a momentum standpoint, the Dow is not even remotely overbought. For instance, the 5-Day RSI on the Dow closed yesterday at 60.64. The 5-Day RSI does not even reach mild overbought territory until it exceeds 70, and that has not occurred as yet. The McClellan Oscillator does not reach overbought territory until it exceeds +100, and we are no where near +100 at this time. The MACD is still on a buy signal despite today's pullback. The Directional Movement Indicator is also still on a buy signal, despite today's pullback. Today the Daily Advance/Decline Line closed within an unofficial 297 issues of reaching a new high for the year, which is also bullish. It does not mean the Dow must close higher tomorrow, but it does suggest the main trend is still up, which is bullish.