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Strategies & Market Trends : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?

To: Roger A. Babb who wrote (612)	6/12/1998 10:04:00 PM
From: bobby beara	Read Replies (2) \| Respond to of 3339

Roger, I think today was a reversal day. We bounced off the 1080 support area and closed above yesterdays close. I think we are in for more exhuberance (I'm targeting 1184). Nikkei sitting on support also and this GDP report might be the kind of bearishness that might marke a short term capitulation bottom. XAU may have had a reversal day also. If I'm right, we should see volume increase next week as we climb to new highs. bb

To: Roger A. Babb who wrote (612)	6/13/1998 12:54:00 PM
From: Les H	Respond to of 3339

There may be further rebound, but that looks to be bounded by 9000. The Dow/S&P bounced off 8680 which also coincided with a downtrending support line since April. Soon, that trendline will go below 8680. The top line of the downtrending channel is 8980. Nasdaq came within 1% of its 200-day moving average yesterday. The simple answer is the market is continuing to make new intraday/intraweek lows in successive weeks. So far, this market is behaving as in June/July 96 which were difficult for many of the same economic reasons as now. There still hasn't been the extreme level of volatility or volume expected at lows that are associated with climactic selling. Yesterday was less than 1.5% down. Normally, the market should approach at least twice that. Another anomaly that was seen intraday in the market yesterday was the extremely heavy level of shorting of the S&P Depository Receipts (SPY). At one time, when the S&P 500 was down 8 points, I saw the SPY only down 1/8 the equivalent of 1.2 on the S&P 500. With the S&P index options expiring next week, the two weeks following next week may be very difficult.