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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Rambi who wrote (56430)	10/26/1998 8:54:00 PM
From: HairBall	Read Replies (1) \| Respond to of 58727

penni: Well my technicals were indicating a divergence as of Friday's closing numbers. Looking at the End of Day Theoretical Semi-Log Charts I glean the following: As of today's closing numbers, my technicals have now rendered or are currently in short-term sell signals on the Dow Industrials, Transports, NYSE, SPX, but still anticipating short-term sell signals for the NASDQ and RUT. Dow Industrials have formed a Bull Flag with a fairly narrow descending trading range. The Dow Composite, Transports, NYSE and SPX have formed Bull Pennants. (Extending the descending trend lines for the Dow Industrials Bull Flag for Tuesday is approximately: Upper = 8550 and Lower = 8225. Note: These numbers will be different when looking at the Actual intraday interval charts.) The Dow Industrials should continue a descending trading range (which could be considered a pullback) until the Bull Flag is resolved, which portends an upside breakout. As narrow as this range is, I suspect the formation will resolve by Wed/Thur. Once this occurs, the Dow Industrials, NYSE and SPX should resume the rally. The NASDQ and RUT are in a rising pattern. I expect a slight pullback or pause in these Indices as the Dow Industrials resolves the Bull Flag formation and then all Indices should join a continuation of the current rally. NOTE: I must say, I am feeling somewhat conflicted. My technicals are signaling pullbacks for most of the Indices and forward looking I expect signals forth coming for the NASDQ and RUT. However, it is possible for both my technicals and the chart formations to coexist, if the pullbacks are slight to flat using the chart formation constraints as guides. If these formations are negated (not just violated) to the downside, it could portend a strong pullback. But, I feel this possibility is less likely! BWDIK Regards, LG