To: Judy who wrote (14949 ) 12/11/1997 9:06:00 PM From: MonsieurGonzo Respond to
Judy; RE:" Sustained Rally Not Yet Indicated "base or "climactic volume" upon which to enter the Tech bellwethers with (large) long investment positions - yet. retracement after busting trend lines (I am beginning to see why you asked me about fibonacci numbers awhile back - I usually use the SI chart generator to analyze the relative strength of same-sector stocks to get a feeling for this; For example, IBM bounced better than DELL, bounced better then CPQ, etc. Not so precise, but handy nonetheless for the do-it-yourselfer).DJIA has gone from 8150 to 7850 in four sessions; -300 points. It is also unusual in that these declines are increasing exponentially (in terms of the candlestick body-lengths). I reckon the next lower support level for the OEX index at roughly 453-455, which would end this phenomenon. But, extrapolating these downward moves for a fifth session would result in a DJIA level of at least 7700 upon close Friday; -450 points for the week.break down , the stronger , "defensive" stocks that have recovered so well from the end-OCT panic would have to lose fundamental support levels. FWIW, here is a list of the most heavily weighted, taken from the OEX-100, with their index weightings, along with roughly made estimates of their support levels:XMI.X Major Market Index daily chart appears (to me) to be the easiest index chart to read horizontal support levels from. It closed at around ~825 today, and seems to have supports in the 815-825 area - to bounce from, we hope!Drug Sector Index daily (candlestick) chart, Judy - all kinds of Gravestone Dojis up there, with a confrming, bearish candlestick today. I am looking up the components to see what's driving this thing. Might find something to "hit with a hammer from above ", like you do {grin}
