Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Michael Hart who wrote (44394)	8/20/2003 1:26:03 PM
From: IQBAL LATIF	Respond to of 50167

The S&P 500 reached 990.35 yesterday, and in doing so managed to climb over resistance at 989. Its next challenge is to get over the declining trendline or, even better, above the 1007 high. Take a look at the two other buy signals in the chart below. Late last year, a buy signal occurred on October 8 at 798.55. The market fell to 776.76 and then took off immediately after. More recently, on February 24, the buy signal at 838.57 was followed by a sharp, two week decline to 800.43, before it rallied. So even when signals work beautifully, one must be prepared for false starts. The rest of this week is filled with economic news. There are plenty of possibilities for good numbers that may serve as catalysts to move both price and volume. Today there will be announcements on inventories and consumer confidence. On Thursday it's jobless claims and the producer price index, and on Friday the CPI, industrial production and capacity and Michigan Consumer Sentiment. Next week is full as well. Yesterday, the S&P Price/Volume Chart turned up sharply on increased volume. There is no possibility for a clockwise buy loop, but if a new high is reached above 1007, on volume around 1.7 billion, it is likely that the Summary Index buy signal will happen at the same time. The NASDAQ Price/Volume Chart looks better than the S&P because if it rallies along the green arrow, a classic buy loop will result. The same is true of the QQQ Price/Volume Chart, a rally along the green arrow will complete a buy loop. All such loops must be confirmed the next day by not re-crossing the line. Above are some excerpts from the article earlier linked...; from www.trend macro.com..;