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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Clint E. who wrote (18074)	10/19/1998 11:52:00 AM
From: Teresa Lo	Read Replies (1) \| Respond to of 69808

S&P 500 Cash Index: Today's Technicals All last week we followed the development of the reverse head and shoulders pattern seen on the 60 minute chart. The pattern was validated on Thursday, when the market broke the neckline to the upside immediately after the announcement from the U.S. Federal Reserve to lower the discount rate. From the top of the head to the neckline, we can measure 85 points. Add that to the breakout at 1005 we can project a target of 1090 for this advance. At 1055, we are less than 35 points from our target. Friday's action on the 60 minute chart formed some sort of triangle pattern. The resolution of this triangle on Monday will give us direction for the first couple of days of the week. RSI and momentum are getting to the overbought side, but this is only an indication at this time and not a signal used to execute a trade.