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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Bull RidaH who wrote (34424)	11/25/1998 4:48:00 AM
From: Death Sphincter	Respond to of 94695

David...in regards to the above 200 DMA it is unfortunate that th data only goes back into the 80's.....but looking at the declines, during the periods that are available, after they got back to where the decline had begun(retraced all).........this current period is really pathetic, isn't it? go bye-bye soon carl

To: Bull RidaH who wrote (34424)	12/1/1998 9:17:00 AM
From: Vitas	Respond to of 94695

"There are no automatic assumptions that can be made about this index. For example, just because 80% of stocks are above their 200-day moving average, there is no guarantee that a downside reversal can't happen. In fact, once the index has moved to an extreme end of its range, it's a good idea to be alert for a change in direction, because the market improves until it is as good as it can get, then it starts to deteriorate. Conversely, as soon as things are as bad as they can get, they start improving. The most important aspect of this indicator is the trend. When the market is trending upward this index should be also be trending up. A trend divergence indicates that fewer and fewer stocks are in sync with the price trend and that a price reversal is likely." from About Stocks Above 200 - DMA, at Decisionpoint.com --------------- I think that the reversal up from the 20% area (from the deep oversold spike down) indicates that the intermediate trend is up. In December '90 - January '91 there was a pullback in this indicator from approx. 40% to 30% before the trend resumed. Since this indicator encompasses 200 days of data, it does not act in a traditional manner compared to 14 day and 9 day indicators such as rsi, etc. Vitas