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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Northern Marlin who wrote (83478)	10/23/2002 8:43:22 PM
From: Tom Pulley	Respond to of 99985

The chart you provided extends from the beginning of the last secular bull market in 1982 through the beginning of the current secular bear market..... Good point. I wish stockcharts went back to the late 1960's as it would be interesting to see the stochastics during the last secular bear market. One or two more up days like today will push my timing model into a call to go to 50% cash. So, at this point it would be nice to see the market correct back a bit and get those indicators back in shape for another run up. One of the short term indicators is the stochastics RSI 14 of the NYSE advancing and declining volume. It is now firmly entrenched in overbought territory above .9. I'd like to see a small correction that brings it back down below .1 which would signal a "buy the dip" opportunity for those that believe this rally has room to run. Below is a plot of that particular indicator along with the plot during the advance a year ago. stockcharts.com[e,a]daulyyay[pb11!b200][vc60][iLo14][J6441732,Y]&pref=G stockcharts.com[e,a]daulyyay[d20010823,20011223][pb11!b200][vc60][iLo14][J6441732,Y]&pref=G In the plot of a year ago, October 30th was a good "buy the dip" opportunity signaled by this particular indicator. Tom