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Strategies & Market Trends : Why the markets will continue higher... -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (40)	12/4/1997 2:26:00 PM
From: ivan solotaroff	Read Replies (2) \| Respond to of 745

Chris: I think that's a really scary chart, because I believe the first bump up after the mini-crash has to be thrown out as a statistical anomaly; that means that with the Naz currently cozying up to 1620, edging up to the resistance line on increasing volume (which may not be sustainable by the time we hit 1640), that a failed H&S (that's actually a redundancy, H&S is a failure pattern) may be less than two weeks from forming. Put that together with a wave of tax-selling and some bad news and there could be a lot of people stuck in some "real ugly" long-term positions by February. I think the reason why volume may not be sustainable at 1640 is that we're now, IMO, going through a last wave of the buy-on-any-dip reflex. At some point that reflex runs its course, then the profit-taking reflex sets in. I'm scared. Ivan

To: Chris who wrote (40)	12/4/1997 5:53:00 PM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 745

Chris, Interesting chart. I say we topped in the DOW and should test no lower than 7500 intraday, in the worst case scenario. The NAZ could test the minicrash lows of 1500. BTW, the bearish coil pattern in the NAZ projects a measured move to around 1500, the minicrash lows. The DOW is stronger and will only test 7500. Today, the DOW put in an outside day, not good news when it occurred right at my resistance point. But, the market needs to work off its overbought condition and inject fear into the hearts of men (and women) before new highs can be made. The next few weeks should be very interesting. GZ