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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (7516)	4/6/1998 11:41:00 PM
From: Robert Graham	Respond to of 42787

I took a quick look at the indices using web charts. Yes, it looks like the NASDAQ is ready for a pullback. The DJIA looks better even though it has been lacking breadth lately and its price momentum has been deteriorating. The S&P 500 looks like it is in the best shape except it is a bit overextended. From what I see so far, I do not see a significant pullback by the market. Matter of fact, the DJIA and in particular the S&P 500 may just move back a bit and consolidate. The MACD is at a resistance for NASDAQ right now. Once the MACD turns down from this point, the correction can progress. I see the 20 day MA around 1800 and a minor former peak at about 1770 and a more major one at 1740. The last pullback was to just below the former peak at 1740. The 50 day MA also appears to be at about 1740. So if NASDAQ corrects beyond 20 day MA, the 50 day MA should provide support. But these charts I am attempting to read may be off. Can someone supply accurate numbers here? I have been seeing that the NASDAQ and the DJIA have been more loosley "connected" right now in their price action. So a correction by the NASDAQ may not have its expected impact on the DJIA. I think some are counting on this relationship to exist in the same way it has in the past, but the market has definitely been changing where this relationship between the two indices where NASDAQ leads the DJIA is not the same anymore. Also some technicians here at SI I think are being motivated by their fears of an overextended market. They have never seen a market driven by massive liquidity before. I would be very interested in seeing if market liquidity is drying up. I think this is one of the most important signals to look for. Also what is the URL to that chartists who posts TA on each sector? I think a look at the leading sectors like financials and retailers is warranted. Also a look at a few key stocks have lead this market rally is worth a look too. Bob Graham