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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Alan Smithee who wrote (38236)	4/5/1998 11:15:00 AM
From: donald sew	Read Replies (2) \| Respond to of 58727

INDEX UPDATE --------------------- Friday's economic numbers was a shocker to the bond market, therefore it rallied and interest rates plumeted. With Friday's strong drop in the interest rates, it has broken the upward trend channel of the TYX and for the time being interest rates is substantially below 6.00%. In light of such the overall BULL trend is intact and technically it can still go higher for the mid/longer term. For the short-term a small technical pullback, for the market to take a breather will still happen. In most cases, it is healthier for these technical pullbacks to occur for the market to continue up. These technical pullbacks develop support lines for future dips and it gives the market a chance to regain momentum. With the interest rates declining so much, the chances of a pullback becoming smaller is increasing; therefore this forthcoming pullback could be as small as 100-150 DOW points, as we have seen in the recent past. It appears that the bad earnings are not pulling down the market, and since interest rates have declined the only other strong negative factor is equity, which according to the media is still strong but is declining from previous months. If anyone can actually get approximate numbers as to money inflows to the mutual funds and rate of change compared to previous periods, such may help. Technically, the rate of incline for the overall market is slowing down (I do not just use price - includes other technical factors such as time). As to how high this market can go - my projections of 9100-9200 is still holding for the short-term. Seeya