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

To: Shack who wrote (60855)	12/4/2002 11:15:56 PM
From: skinowski	Read Replies (1) \| Respond to of 209892

What you foresee is possible… Take a look, however, at the SPX support line out of October 10. While it has been tested during recent minor lows, it also formed an acceptable lower line of a possible ED, which – if this is the case – has been broken yesterday. If this is what’s playing, we are heading well below 900, towards the origin of the wedge (883 is a 38% retracement of the entire rally... 862 is 50%). NDX opened today at 1066.75, several points below support. The darn thing gapped below the 1070 – 1080 area, jumping across several recent gaps, tops and bottoms… It made an island reversal out of the action of the past couple of weeks, confirming that the gap up on Nov. 21 was most likely of an ‘exhausted’ variety… The gap down today fits in as a wave 5. A 38% retrace of the (probably completed) impulse down on NDX is 1090 with change, and on SPX it is near 927. That would call for some more up action tomorrow. Curious fact about SPX 883, mentioned above… It is a 38% retrace of the entire rally, yes. Now, note that if SPX would retrace 38% of the decline of the past couple of days (up to 927), and then make another move down, the point where the second impulse equals the first would be… 883. Morale? If (IF) we bounce down off 927, then 883 might be in play. (getting too late for ‘Fibos’ –g.)