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

To: Investor2 who wrote (8954)	11/23/1998 10:21:00 PM
From: nicewatch	Read Replies (1) \| Respond to of 44573

I2, Good question. As seen today, price did not react at all to the longer term fork. Ideally, price should be responsive to the near term fork, which is slightly above today's high. Also, price is now at the upper tine of the most recent mini-fork using alternate closes (short term fork method not shown on my charts). Given the momentum of the market, I am biased to expect a reaction off of the this upper more recent tine... BWDIK. I also have no clue about the downside potential, if a dip happens. In short, the market is at a point where this most recent fork can prove itself... or not. The chart draws the picture well, I suppose we'll have to let prices do the talking to figure out the rest. To answer your question... I don't know because I don't trade the S&P anymore, but I would expect a tradeable dip soon, fwiw. Talk to you later Regards, Frank

To: Investor2 who wrote (8954)	11/24/1998 6:57:00 AM
From: GROUND ZERO™	Read Replies (2) \| Respond to of 44573

I2, That chart tells me that we're about to enter into a period of consolidation both above and below that upper line, a possible trading range. If the fork were more horizontal and not pointing upward, then touching the upper line might be a great place to attempt a short, but more likely that it's not a place to be buying. I think the way to use the fork here is to calculate the level of pull back to add to long positions provided that internals remain positive. I would expect some kind of sell off at that line, how much? I've no idea, although the fork can give you an indication of where buying would come into the market. The internals are still positive and give no sign of weakening yet. If yesterday's high holds as the high for this rally, then just eyeballing the chart with a fork would give initial support around 1160 or so. GZ