To: Esteban who wrote (922 ) 12/9/1997 7:35:00 PM From: MonsieurGonzo Read Replies (2) | Respond to
Esteban; RE:" SPY "90 min chart shows a very strong white bodied hammer for the quote.com SPY,90 as a Doji for the last candlestick.last night's closing bullish engulfing pattern was the first false Morning Attacks . ORCL's gap-down open today just collapsed the CWX.X CBOE Computer Software Index . The bondz, too (TYX.X) are starting to sell off (for the first time in 3 weeks)....the daily trend line from 10/28 was broken today (barely) so XMI.X,90 Esteban, (as are the horizontal support levels, IMHO). I agree and disagree with the idea that support should be right here. I've already posted my take on the support levels, and yep - they are essentially right here . But the violation of the UpTrend changes my reading of what we should do.the trend is changing . We expect any bounce up from here to be a kind of technical correction , (or "Bull Trap"), and that we should go short on any strength now, rather than go long on any weakness.new highs have just been achieved , and - especially evident on the XMI.X,D Major Market Index chart - we are simply re-tracing and fiddling around here before going on up to un-charted territory. Donald Sew made a very good point the other day when he said that "new highs" render much T/A helpless, as there is no way to know what resistance and support levels await us. Candlesticks would be more important then, because we would have no horizontal levels, only trend lines, to guide us from this point on.index components , Esteban; especially the heavily weighted ones on the OEX-100. FYI...
