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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: Tom Trader who wrote (7551)	10/30/1998 9:54:00 AM
From: Jerry Olson	Read Replies (1) \| Respond to of 44573

TT 1083 on the futures is what on the SPX????? you went long yesterday...right???

To: Tom Trader who wrote (7551)	10/30/1998 9:59:00 AM
From: donald sew	Read Replies (5) \| Respond to of 44573

Tom, Im with the feeling that we are approaching another short-term top by Monday. No big selloff thereafter, but maybe a better/stonger buy-in point at the end of next week. >>>>>>>> INDEX UPDATE ---------------------- Previously I had mentioned the divergence between the NAZ and the DOW, but after yesterday's performance the gap has narrowed. Per my short-term technicals, here are some approximate readings: 1) 85-95 range = NAZ,NDX,MSH,XCI,IIX,DRG,XAL,RUT 2) 60-75 range = DOW,SPX,OEX,BKX,XMI Over 80 is in the overbought region, and over 85 is in/close to CLASS SELL territory; upside is very limited. The 60-75 range is in the upper mid-range and still has about 1-3 days of upside. So the overall market, on average is approaching the overbought region. Since the HiTechs is that high, it could limit the upside of those indexes in the 60-75 range. So lets say that the DOW is up 100 points today, if the the HiTech indexes were lower, the DOW could be up 150-200. If the DOW does not exceed 8652, it would produce a LOWER HIGH, but we also need to keep in mind that the SPX has already equaled it previous peak of last week and will exceed it today, producing a HIGHER HIGH.The DRUG index is about 15 points of matching its all time high. The market internals have improved, but still not dramatically; however money is rotating to other sectors which is a significant positive for the market. The DOW is the weakest of the major indexes, which should not be surprising when 19 of the 30 components had decreasing earnings this quarter, per FIRST CALL. In light of this, I feel that the DOW,SPX,OEX could move up 1-2 more days; therefore I feel that the market should top off/dip on MON, and could start as early as today. I am not expecting this upcoming dip to be that large, but could retest the recent lows of this STAIRSTEP in the 8350 range. If the 8350 range holds for the forthcoming dip, I then suspect that the following upswing could take us to slightly HIGHER HIGHs(8700-8800 range). If the short-term top of this specific upswing does top off/start dipping near Monday, the downswing should last 3-6 days, which is targeting THUR/FRI of next week for the bottom. The futures are up strongly this morning(with FV calculated in). Darn should have gone with my BUY signal on the DOW, but the divergence between the NAZ and the DOW prompted me to play it safe. After the next dip I will be going long, unless the market significantly breaks the stairstep to the downside. Seeya