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

To: bearshark who wrote (300)	1/3/1998 6:28:00 AM
From: bearshark	Read Replies (1) \| Respond to of 745

Good morning GZ: I am up early and I finished my charting etc. This is what I ended up with. I redid my triangle with the top line from the 8/97 high to the 12/97 high and the bottom line from the 10/97 low to the 12/97 low. This is getting to be a tight triangle--we are nearing the apex. I have a break-out from the top of the triangle at about 8160 and a break-out from below of about 7750. If this is a consolidation period, it looks like it should break out to the top. On the other hand, I have an extremely overbought condition. That could be explained though by the time of year. So I guess I am still with your number 1. We could go down a bit from here to get rid of the overbought condition and then rally to new highs--but watch out for that breakout below 7750. At any rate, I believe next week will be a key week.

To: bearshark who wrote (300)	1/3/1998 7:01:00 AM
From: GROUND ZERO™	Read Replies (4) \| Respond to of 745

Hi bearshark, Yes I have been looking at it for a couple of weeks now as it continues to form. What it looks like to me is a massive inverted head and shoulder formation with the head at the October lows. This pattern suggests a measured move to around 9600 for the DOW. The three points for the neckline are the highs in August, October, and December. Additionally, triple tops like this are indeed rare and if prices move up to complete this inverted H&S, we would have a quadruple top, I've never seen such a top in any market in more than 20 years. BWDIK I have more cause to believe that these markets are poised for an imminent breakout of new highs. Roger suggests in a recent post on this thread that the top in 98 could come early in the year. I suspect he may be right. This may very well be the blowoff. Of course, if it craps out from here, all bets are off. All in all, it should be an interesting week. GZ