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Strategies & Market Trends : Take the Money and Run -- Ignore unavailable to you. Want to Upgrade?

To: Tim Davies who wrote (10842)	7/25/2002 8:01:52 PM
From: Petrol	Read Replies (1) \| Respond to of 17639

Message 17795852

To: Tim Davies who wrote (10842)	7/25/2002 8:12:55 PM
From: Jorj X Mckie	Read Replies (1) \| Respond to of 17639

Tim, I look at a couple different charts for every index or stock that I am interested in. I'll try to give you an idea of the thought process that I go through when looking at the chart (I have a couple of requests to do this, so I am killing two birds with one stone) The first thing that I look at is the P&F chart. I look at various different increments to get an overview of the bigger and smaller moves. Right now, the 20pt chart gives me the best idea of what is going on. We set new lows yesterday and then bounced up. There are so many sell signals on the Nazdaq that it is pointless to think too bullishly. The bounce yesterday was not 50% of the drop, so there was no real reason to think that the bounce would continue to be meaningful. stockcharts.com On the P&F chart, 1200 is no considered support. It will be a double bottom and I would expect to get a bounce there. So, a short answer to your question is "yes" there is a double bottom at 1200. Here is my analysis of the Nazdaq from yesterday. Explanations are on the chart. stockcharts.com[w,a]dhclniay[pb50!b200!i][vc60][iub14][J3056325,Y]&pref=G I do not believe that the double bottom at 1200 will hold. One of the little mantras that I have is "support will be broken". Support levels in this market can provide a nice reference point for traders to know when the next bounce should occur, but for the most part, they won't be indicating a change of trend. If I didn't answer your question, let me know. JXM