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

To: Patrick Slevin who wrote (43837)	5/24/1998 8:31:00 AM
From: donald sew	Read Replies (1) \| Respond to of 58727

INDEX UPDATE ------------------------------ For those familiar with my analysis, I use many technical indicators and do not just rely on one or a few to come to a conclusion. However just noticed a technical hint, although not conclusive, that a bigger pullback is right around the corner, rather than a surge to the upside. Take a look at the weekly charts instead of the daily. The highs for 6 weeks on the DOW has been within approx 100 points and for the OEX, it has almost been 8 weeks where the HIGHS were within a very tight range of only 7 points as indicated below: DOW: 9168 9213 9148 9262 9225 9202 OEX: 541 542 543 548 541 546 547 545 I also checked back to 1994 and this is the longest period for the OEX to be that flat at a summit. After each instance of an extended period of flatness at a summit, there has been a sizable pullback. I presume the SPX would be similar, but my data is incorrect. From the OEX weekly charts, it appears that chart formation which is taking shape is the HEAD AND SHOULDERS. From last AUG till end DEC, it appears that the LEFT shoulder developed with the OEX trading in the 440-470 range, then the head taking shape since JAN of this year, and that we are now at the top of the head. If the HEAD & SHOULDERS is completed it would imply that the OEX would return close to the 440-470 range, which would also imply a huge pullback of about 1000 DOW points. This is only one interpretation and not conclusive, and I believe that it would require alot of bad news to get that strong of a pullback like GREENSPAN increasing rates. Many ignore the weekly charts, but often it gives the bigger picture. Have a nice holiday. So far mine has been good, went to AMISH country and almost got run over by a horse driven buggy. gggggggggggggg