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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: bobby beara who wrote (17848)	9/6/2001 12:46:18 AM
From: ajtj99	Read Replies (1) \| Respond to of 52237

Bobby, we were technically 1/2-point from closing the gap from April 4-5 on the NDX. That may be splitting hairs. There were two reversal candles in 2-hours on the NDX charts, both the 15 and 60-minutes. That's a little much to be calling this a bottom. Also, the put/call ratio closed at 0.97, which is still within reach of the day's highs. The bounce was also only 16-points from the April 4-5 unfilled gap-up on the COMPX (1638-1700). Don't you think we'd have hit that since we were within 1% of it? It at least makes you think there should be a re-test of such a suspect level of support. Furthermore, the bounce on the NDX was not a decent support level either. It just almost completely covered the span of the gap. There was not much breadth in this rise, so follow through is iffy at best. I think it is real difficult to expect anything more than a technical short covering bounce at these levels. We are so close to a double bottom that it should act as a magnet, IMO. Think of it, Bobby. There is an unlimited number of buyers on a double bottom. There are very few buyers at these levels, IMO. The psychological cushion a technical double bottom provides is enough to make funds wait for it. Upside potential on this leg is possibly 1771, 1800, or 1825 max, IMO. With a double bottom, we could hit 1890, 1934, or even 1973 before a reversal.