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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (9792)	11/16/1997 7:49:00 AM
From: bearshark	Read Replies (2) \| Respond to of 94695

Haim, Bill, et al: One thing that I have learned over the years is to accept any "new paradigm" but just be aware that the "old paradigm" will someday reemerge. I accept the rules of the market we are in today. In August of 1997, I was convinced that we had reached a long-term high in the DJI. So I began to dust off the indicators that served me well in the past. I am still in the process of reconstructing my work. The first thing I did was to construct resistance lines on the DJI. The most important line is one that is now at about 7060 on the DJI and rising. If that is broken cleanly, it would signal to me a true bear market. However if the DJI tests that number and bounces off, the previous highs may be taken out. Currently, I have two declining resistance lines from the peak of the August high. One is at 7550 and the other is at about 7800. Both are declining rapidly. On last Wednesday, we reached a point where the market appeared highly oversold. This thread also supported that reading. That indicated a rally. If Friday's rally would have ended in a 125 point rise I would have felt confident in a stronger rally. However, it backed off at the end of the day somewhat. The 7800 number on the DJI may be tested this week. If it is broken through convincingly, I suspect we may enjoy the new paradigm for a while longer. I greatly appreciate the posts on this thread. They have helped me in my comeback. I did not have to think much in the past few years in this bull market's new paradigm. I will post from time to time in the future.