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

To: Shack who wrote (28539)	1/17/2002 9:49:40 AM
From: John Madarasz	Read Replies (1) \| Respond to of 209892

Shack, I think the extremely overbought condition in the larger 6 month timeframe right now dictates how the action at important support should be viewed, and traded... Will it be bullish consolidation and a working off of the larger overbought condition...or a violent oversold short term bounce where mainly shorts are locking in profits? Only time will tell...the jig for me right now is leaning towards the later of course. I see the most important area of support for the comp right around 1850-1900 area, and the 200 dma pyscological/manipulation zone. I think there is a ton of support there from the last 3 weeks in Nov. If we consolidate there through what i feel will be a terrible earnings season, then that will probably be bullish...but any WEAK up, or weakness in general, will not help to reinforce the bull market case. i sincerely doubt we just blow right through that zone. I'm open to every possibility too, but I can't abandon my overall trading plan, objective reads, and most importantly my gut and convictions here. I have to continue to "believe what i see", and filter out noise and short term uncertainty. i'm out the door shortly...looking forward to checking back in later. Knock em dead ... and keep one eye on the FED <g>