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

To: Steve Louris who wrote (8958)	5/27/1998 2:28:00 PM
From: Wacker1	Respond to of 42787

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To: Steve Louris who wrote (8958)	5/27/1998 2:40:00 PM
From: Robert Graham	Respond to of 42787

I think 8750 will be a key pivot point for the DJIA. If the Dow moves past this figure, then this significantly increases the likelihood of a selloff down to its 200 day MA which is inline with what you are referring to as a 10% correction. It is interesting to note when the program selling came into the picture. The DJIA was consolidating around that intraday low it made earlier in the day that it retraced back up to. This was a key pivital point. This happened going into lunch and indicated to me possibly lighter trading activity. This continued beyond the time I would expect the market to resume their net selling of stocks which indicates this is not strictly from the effect of the lunch period on the market. The market bias is downward in the direction of the current strong intraday trend. Changes in the TICK and TRIN during this period supported this observation. Then came the program selling. Nothing like a program sell to polarize the market into moving in one direction. Now there appears to be some "backfilling" after the artificially induced selloff. The TICK and TRIN appear to be at extended levels now. I am convinced that the program selling and buying has to be technically based decisions, which would of course make sense. But I thought it would be based more on something like the TICK and TRIN or S&P Futures. This time it appears to be a more straightforward analysis of the price and volume pattern of the index with perhaps the other indicators providing a supporting role. The program selling did not attempt to stop and reverse the market in its tracks. It accented and exaggerated a downward movement of the market which was in the process of gaining momentum and had this broader technical condition of the market show up in the DJIA. Just dome ideas of mine. Comments welcome. Bob Graham