Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Tom Byron who wrote (12181)	9/23/2001 5:25:55 PM
From: sea_urchin	Read Replies (2) \| Respond to of 80984

Guree, no, no. The central line is the distribution mean, not a support line. The problem is the chart hasn't been drawn properly --- the lower line should have been drawn from 1950, not just from 1974. One can't pretend the line doesn't exist for the sake of an argument. If you look back to 1970, after hitting the central line, you will see that the index moved (after bouncing around a bit) to the lower line which one must consider to be the lower limit of the distribution ie the "support" line. Unquestionably, there is difficulty in coming to terms with the accelerated pattern in the US markets which started in 1996. Normally, after a period of acceleration, the price will return to the area (or below it) from which the acceleration started. In fact, it is this price acceleration which defines the market bubble, which commentators refer to frequently and which is very prominent in the Nasdaq chart.