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

To: BubbaFred who wrote (56449)	10/27/1998 8:54:00 AM
From: donald sew	Read Replies (1) \| Respond to of 58727

INDEX UPDATE ------------------- Surprisingly, my short-term technicals on the DOW already has a reading of 27 which is very close to the oversold region which starts at 20 and under. On the other hand the NAZ is strongly in the overbought region. With this divergence, the market can still move up, but the rate of incline should not be huge until the NAZ pulls back some. So what I see now is a short upswing, then a small pullback in the NAZ, then the stronger move to the upside. This small pullback could be as small as a intraday dip. This upswing will not be smooth, but by the end, it could be strong and could break the recent highs of 8650. Since the DOW has a reading of 27, for it to get to the overbought range the DOW could move 300-500 points. So based on that my upside maximum target is 8803, for this specific forthcoming upswing. ITALY cutting rates is helping to push the markets up, as evidenced by the futures. For today, if we move above yesterday's highs of 8521, that would confirm that the bias is to the upside. The position of the futures are already in that area. In light of DOW having a reading of 27, and with market internals improving, feel that we are near a short-term bottom in the 8400 area, so we could be up from here, but feel the forthcoming upswing will be not be that smooth. Seeya