Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?

To: Lucretius who wrote (2998)	9/16/1998 1:20:00 AM
From: Alex Greenland	Respond to of 14427

Here is something from a mailing list I'm on that appeared on Monday: The Dow Industrials appear to be consolidating the recent sell-off with a tight congestion pattern. We anticipate a September rally in the Industrials but expect that rally to subside around 8150 due to overhead resistance from the Oct - Dec '97 highs as well as a descending neckline from the April - Aug Head & Shoulder top. These resistance zones converge at approximately the same level, therefore it is safe to presume prices will turn around and head lower. Also, we may be forming the Right Shoulder of a much broader top that will send this market into a Bear lasting several months and likely achieving a price objective of approx.. 5000, which will coincide with a trendline connecting the '90, '91 and '94 lows. This trendline appears to be the Primary trend and looks like it will be tested if the market confirms a Bear signal and breaks down further. We are implying that September will rally, but October will bring new lows and a likely major technical breakdown. The 50-day Moving Average has crossed below the 200-day Moving Average for the first time since the 1990 Bear market. This is a strong signal and cannot be ignored. Alex G.