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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: Doug R who wrote (21954)	10/10/1998 3:21:00 AM
From: Doug R	Read Replies (1) \| Respond to of 79243

The 10/27/97 to 5/28/98 13 dRSI line dictates that a close above 7975 on Monday makes it possible that a continuation to 8040 is probable. That valuation represents the resistance that is set by the 10/27/97 to 5/27/98 13 dRSI line. The 5/27 line is the last line of 13 dRSI resistance that clears the DJIA for a significant rally upon a break and successful retest and as such, intraday DJIA activity surrounding the 8040 level (IF 7975 is broken to the upside and is itself successfully tested as support to enable a run toward 8040) should be scrutinized very carefully. ie, take profit and a deep breath at 8040 while monitoring the next day or two in light of the activity surrounding these lines to get a grip on whether or not prevailing market sentiment allows for whether DJIA valuation should be over 8,000 or if a trading range below 8,000 is more appropriate as the overall (and I do mean overall) "big money" stuff is hashed out. I realize a lot of detail is in this post so please feel free to ask any questions (on the thread...no PMs or emails) pertaining to the specific points made. Doug R I stress intraday activity surrounding the retest area here since on 10/9, retest activity of the break above 13 dRSI resistance at the 7795 (+ or - 5 pts) level was quite intense and sharply exhibited when the break took the DJIA above 7825 and a quick retreat to 7800 was quickly followed by the sharp run to the close at 7899. The price trend intersection kicked volume up. The magnet trend intersection is providing the expected polarity. The yield curve is correcting (remember, it takes at least 3 months of inversion to accurately predict a recession...or so they say). Damn, I still feel comfortable with an allocation of 60% S&P and 40% short term US debt. I'll be watching the 13 dRSI stuff very closely though.