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

To: Investor2 who wrote (20117)	6/11/1998 11:04:00 PM
From: Oeconomicus	Read Replies (2) \| Respond to of 94695

I2, re 8750, good questions. I was wondering myself why this is such an important number. In March, on the way up, the market didn't even stop to take a breath - just blew right through. Two weeks later, after reaching just over 8900, it did retrace to 8750 intraday twice, but never closed below about 8780. Last Thursday, we got there intraday but didn't hang around long. This probably has nothing to do with what a "pivot point" is, but it just doesn't look that important to me - at least as far as support goes. The only significance I see is simply that it's the last low of the current correction, so I would be very pleased to see it provide NO support and confirm a downtrend. BWDIK? Regards, Bob PS: Does anyone know what fair value is for the September S&Ps? Globex has them at about 11 points over the cash right now, up 220, but I'm not sure if that is meaningful. TIA.

To: Investor2 who wrote (20117)	6/12/1998 10:02:00 AM
From: Robert Graham	Read Replies (2) \| Respond to of 94695

A pivot point is a value where the price of a stock or index can reverse. If a reversal does not occur, then the price will continue its current direction. A pivot point in my terms is identified by a support or resistance level which are concepts from technical analysis. For the DJIA, 8750 is a strong support. Once this level is broken the index will continue down and 8750 will then act as resistance to upward movement of the index. This means that once the DJIA is below 8750, a move up above this level can take time. Once the DJIA has broken through 8750, then it is likely that it will continue down to its 200 day MA which is at about 8250, IMO making this market correction an intermediate term top to the market. Bob Graham