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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: karma who wrote (5045)	11/15/2001 11:29:57 PM
From: John Pitera	Respond to of 33421

I've seen some technicians comment about how a stock, a market, or a commodity etc can have held a support level a few times over a period of months and then break down below the support that had held up for quite a while. The conventional way of viewing that break down is to think that it's bearish and could lead to a significant round of further selling. However, on occasions, especially if the sentiment indicators, such as put call numbers, market vane bull and bear percentages, open interest contractions, very high VIX and VNX readings, momentum divergences in the specific chart, or a divergence where in this case the MOMO stocks make the new lows but the indicies look much better, and a nice leadership rotational strength develops (the brokers, and biotechs were helpful at the sept low, the banks as well) then these Momentum stocks are the false tells. John