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

To: Roger A. Babb who wrote (694)	6/25/1998 8:28:00 PM
From: Les H	Respond to of 3339

The ADR/X (Average Directional Movement Index) and DMI (Directional Movement Indicator) indicators confirmed an uptrend is in place for the Nasdaq as of Tuesday. So far, it hasn't confirmed for the Dow and the S&P 500. Perhaps the other indices will play catch-up here or there is another dip to a higher support level. There was an interesting article in the IBD about bullish follow- through days. This occurred on Tuesday and signaled the market may be moving up and away from bottom. There were so many takeover stocks in the S&P 500 that the correction is understated. I maintain a composite ticker of the S&P stocks without the takeover stocks (since I delete them when they announce). The S&P corrected 9%. The Nasdaq corrected 12%. I also have a composite ticker of the 100 small cap growth stocks in the S&P 600 small cap index. That corrected 15% and is still down 12%. The mid cap growth index corrected 12% at the lows. The companies with the worst earnings fears are still being left behind, the semiconductor, the oil stocks, and other heavy industry or industrial materials stocks. The Nasdaq did hit the upper end of its trading band (1895) today and reversed. The trading band is centered about the 28-day mov avg which is currently at 1801. So, a potential pullback could be to low 1800's and still be moving in an uptrend. This would be about a 3% pullback from today's close.