To: GROUND ZERO™ who wrote (12280 ) 12/25/1997 9:45:00 PM From: bobby beara Read Replies (2) | Respond to
Hi GZ, I'm not so sure that the sentiment is that bearish as indicated by our own bull/bear survey (still less bears than bulls a bottom would have the reverse) and while the daq is extremely oversold the NYSE is only moderately oversold and the MClleland Oscillator just had two minor change readings in a row (-1 each day), there were three in a row prior to expiry 270 drop. Let's see what happens Friday (my guess would be another minor change reading) BWDIK -g- You can't ignore the significance of a market symbol like MSFT breaking down thru 200 like a knife thru soft butter (don't see why the rest of naz won't follow the leader). I would compare this slide, to the slide of Ford in 1927, when the market had a break. When the major icon of the market breaks, the bubble bursts. Last time Soft peaked in mid July and fell, it was 14 trading days from peak to the slide of the S&P. A similar trend here of 14 trading days would put us at 12/29/97. Given this selloff in Soft much more dramatic, I would expect the DOW to also be much more dramatic. I see from trendlines a first support at 6850, then maybe 6200?. Plunge protection will probably be inactive over the holidays also. In 40 years of charting McClleland has never seen a drop like 10/27 not retested. Have you seen those put premiums - outta sight - think they are trying to discourage buyers -ggg- BWDIK
