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.

Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: AllansAlias who wrote (22309)	11/26/2001 12:30:51 AM
From: marginmike	Read Replies (1) \| Respond to of 209892

Analysis - Sunday, November 25, 2001 7 p.m. On Friday the Dow closed up 125 points for the day, and 92 for the week. As you know, in April 2001 our Lindsay Count from the Middle Section suggested that if the Dow was still reaching new lows this Fall, a probable Bear- Market low was due near September 24, plus or minus a few days. The Bear-Market low for the year so far was 8235 intraday, seen on Friday, September 21, within just one trading day of our September 24 target. Since then the Dow has risen 1,741 points to a high of 9976 on November 19, and the Nasdaq has risen 511 points, or 35.91% to a high of 1934 on November 19. The Gann 3-Day Chart turned down on Wednesday of last week. We reported that day that the downturn in that chart was not in itself any sort of sell signal, and that the 3-Day Chart could turn right back up on Friday of this week. The 3- Day Chart did in fact turn back up on Friday, November 23, which is bullish for this time frame. This suggests a test of 9977 on a print basis and 10041 intraday in the Dow. A rise above those two levels this week should signal that an even stronger rally is coming at some point this week. The Gann 3-Day Chart could not turn down now before Wednesday, November 28 at the earliest. However, the Gann Weekly Chart would turn down this week on any decline below 9796 on a print basis, and more importantly, 9746 intraday. If that occurs it would prove that a still stronger correction is coming before the month is out. However, keep in mind that even if this occurs, it would not turn us bearish. At worst, we would expect a sharper short-term correction to follow, which for the most part would represent a buying opportunity as far as we are concerned. As we have discussed, the 10-Day and 89-Day Moving Averages are very important in our work from an Elliott Wave perspective. When the 10-Day Moving Average rises above, or falls below the 89-Day Moving Average, it normally signals that an important new Elliott Wave up or down is underway. The 10-Day Moving Average rose above the 89-Day Moving Average last week. That is a significant intermediate-term bullish signal. Several weeks ago we gave you an upside projection calling for a probable rise to 9974 plus or minus 205 points intraday. This called for a probable maximum rise up to 10179 intraday in the Dow. Last week's intraday high was 10041, seen on November 19. In our November newsletter we stated that our weekly charts had given an upside projection calling for a probable rise up to 10348, plus or minus 242 points intraday. This calls for a probable minimun rally to 10106 intraday in the Dow. Again, last week's rally peaked at 10041 intraday in the Dow. The main trend on the Nasdaq is still up. The Nasdaq currently has a short-term upside projection calling for a rise up to 1974, plus or minus 39 points. The high so far last week was 1934. A rise above 1935 in the Nasdaq would give a short-term bullish signal this week. A decline below 1853 in the Nasdaq would signal that a stronger correction is coming this week, but this would not be any sort of sell signal, and despite the probability of a stronger decline short term, that correction should represent a buying opportunity. For now, we do remain bullish, so hold long positions. New subscribers, if you are not yet at least 55% long, we will give you new instructions over the next few days on when to do new buying.