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

To: Electric who wrote (17300)	11/2/1998 8:36:00 PM
From: dennis michael patterson	Read Replies (1) \| Respond to of 42787

Favors is short Jerry Favors Analysis Monday November 2 8 pm Last evening we told you the we expected sone further rally early this week. The Dow at the highs today was up over 150 points. We closed up 114.05 at 8706.15 . Breadth today was extremely strong,showing 2295 advances to 815 declines. We have been looking for a short term high near Nov. 2 plus or minus a day or two. That position has not changed.Today's rally suggests there may still be a bit further to go in this rally.From a Cycle standpoint we are in the time frame for some sort of market high.We still believe we will see a high early this week and a decline into November 6 plus or minus 1 or 2 trading days. Any decline below 8570 on a print absis in the first hour of trading tomorrow will give a short term sell signal off the hourly charts. A Sell signal could be given closer to current levels at some point Tuesday. The Trin -5 ,our 5 day moving sum of the daily trading index readings,closed at an unofficial 4.22. The is close to an overbought reading. The 5-day RSI on the Dow closed at an overbought 84.25 today.That is still a negative divergence from the 88.07 reading seen on Oct. 2. The 10-Day Rate of Change is also showing potentially bearish divergence. Our point here is that the technical indicators suggest we are near a high ,if we have not seen one already. Any rally abve 1122 in the Dec. S&P futures Tuesday will signal a probable rally above 8742.97 on a print basis tomorrow.However short term traders we will hold shorts with a stop of any close above 8932. Stock traders and mutual fund switchers,we want to go short on any rally above 8743 in the Dow with a stop of any close anove 9046.