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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: superdow who wrote (4202)	6/28/1998 3:51:00 PM
From: Mr. BSL	Read Replies (1) \| Respond to of 34808

Hi Superdow. I think the Dow target is based on the vertical count. Having the NYSEPB continue to deteriorate increases the likelihood that a pattern will reach the target, not the magnitude of the target. The bottom line is that the NYSEBP is really a gauge of risk, not a measure of correction magnitude. Someone let me know if I'm way off base, but I seem to remember it being this way. May the trend be with you. duke60

To: superdow who wrote (4202)	6/29/1998 6:01:00 AM
From: Bwe	Respond to of 34808

superdow...The price objective that Chartcraft has for the Dow is derived from computing the down side price objective for two differently scaled charts for the DJIA. The first chart is called the DJIA 20 X 60 (20 points a box/60 points needed for a reversal) has a down side price objective of Dow 8540 and provides the upper end of that price target. The second chart is the DJIA 50 X 150 (50 points a box/150 points needed for a reversal) has a down side price objective of Dow 8250. Chartcraft is simply using the NYSEBP in it's market comment to state which team is on the field and to stress the pressure that is being put on all stocks. In their effort, as Tom likes to put it, "to keep it simple", Chartcraft will use the DJIA as it's proxy for the "market". This is much like baseball where a batter's average is the first number a fan would look at to evaluate a player's performance, though that number may not be the best number to evaluate a player's performance (on base %, slugging %, etc, might be better measures), the DJIA carries the most meaning and is understood by the most people. Bruce