Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: bobby beara who wrote (17589)	4/30/1998 2:59:00 AM
From: Vitas	Respond to of 94695

Hi Bobby, The -271 on the McClellan should be the bottom for now. It makes sense for it to stop here, short of the bottom it reached on October 27, 1997 in the roughly -330 area, given the slamation pattern. I think, that the McClellation summation slamation pattern we were discussing two weekends ago as being the key to the market then, is still intact We should now travel to the upper Bollinger bands. It think it will be a slow and perhaps choppy affair getting there, and thus tough to play with index options. It is the last leg down of the pattern that produces the sharp downdrafts in a quick period of time, as you can see by examining the time periods I listed previously. The real decline should start in the week after May expiration and bottom the end of May. In the short run, we are now right at the declining trendline in the oscillator (connect 3/5/98 bottom of -69 with 4/8/98 bottom of -101 brings the trendline as of the close to -125. The oscillator closed at -129. In the Nasdaq there is no similar potential problem; the oscillator closed above the trendline drawn on those dates. If you noticed today, they let air out of the Dow today on each pullback, compared to the S&P. On Monday's decline the S&P found support at just below the lower Bollinger Band; the Dow just below the middle band. Today, once the the Dow printed at the mid band average, it sold off. They may play around with those mid and lower bands some more as the two averages adjust. Vitas All disclaimers apply.