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

To: SpecialK who wrote (83782)	4/30/2003 11:45:41 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 99985

SpecialK, I'm not implying that we're seeing a reversal of the overall bearish trend in the markets, but merely that we appear due for a major rally in the Nasdaq (at least 500 points or so, IMO). Breaking 1500 resistance should permit a run to 1700 and possibly 2000 before it has to test that next major resistance point at that level. The DOW is a bit more tricky since it appears to have substantial resistance at 9000, which conincidently marks the 22 week moving average and the top of a downward monthly channel. The SPX looks like it has room to 1000 or a bit above it... We'll see if I'm reading the tea leaves correctly or not over the coming months. But one thing that has me quite concerned long-term is this recent SEC fine against the big IBs.. That's going to be just the beginning and I can see class action suits on behalf of investors which could make the tobacco settlements look trivial. I don't see why judgements against these firms couldn't range in the area of a $1 Trillion dollars or more... That would likely result in some big name investment house and/or their parent companies, being put on the verge of bankruptcy within 3-5 years (average litigation time)... Not that I feel much sympathy for them, but it will definitely impact how they go about doing investment banking and IPOs in the US markets. Whatcha all think? Hawk