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.

Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Judy who wrote (17134)	10/28/1998 10:11:00 PM
From: HairBall	Respond to of 42787

Judy: I was talking to some folks on the Big Kahuna thread and naturally they're bearish. Not all on the BK are bearish, at least not short-term...<g> The Dow Industrials Bull Flag is still intact. Using the Intraday Actual Semi-Log 60 Minute Chart, the lower descending trend line projected one day forward for tomorrow is approximately 8300. I have been expecting the Flag to hold and to resolve to the norm, which would be a break to the upside. (A bull flag is a bull rally consolidation, which is a downward trending trading range that can be viewed as a somewhat predictable pullback.) The upper descending trend line projected forward one day for tomorrow is approximately 8490. A break above of any significance would portend a continuance of the rally. I was expecting the break today or tomorrow, now possible as late as Friday. A break above would find next resistance at the 200-day SMA at 8585 and price action resistance at 8600, 8800 and 9000. However, supporting chart formations on the NYA and SPX broke down yesterday, but they did not follow through to the downside today! A break below the Industrials Bull Flag lower trend line of significance would negate the formation and portend a stronger pull back. The next support would be at the 21-day WMA at 8273, minor price action support at 8100 and next the 50-day SMA at 8079. My personal indicators gave short-term sell signals on the Dow Industrials after the close on Friday and after the close on Monday for the Transports, NYA and SPX. Signals for the NAZ and RUT are close, but a move to the upside could preempt the signal. My stuff only portends direction and not magnitude. Based on the above mentioned chart formation, I have been expecting a minor pullback in the Dow, NYA and SPX with a pause in the NAZ and RUT. Then a resumption of the bull rally. However, that expectation is somewhat in question since the breakdown of the bullish formations on the NYA and SPX. Time will tell! BWDIK Regards, LG