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

To: dennis michael patterson who wrote (18014)	11/26/1998 10:50:00 PM
From: dennis michael patterson	Read Replies (2) \| Respond to of 42787

Jerry Favors Analysis - Thursday, November 26, 1998 10 p.m. Wednesday, November 25 was basically a sideways day, with the Dow making little real progress in either direction. At the lows Wednesday the Dow was down as much as 48 points,and at the highs the Dow was up as much as 17. The Dow closed up 13.13 at 9314.28. Our position remains unchanged here. Our work continues to suggest some sort of top is likely in this time frame. The question is whether we have seen that top or not. Any decline below Wednesday's intraday low in the Dow will turn the 3-Day Chart down Friday . Wednesday's intraday low was 9199.20 intraday. The print low was 9252.49 but the intraday low is the more important of the two. Any decline below 1182.40 in the Dec S&P futures will signal a probable decline below 9199.20 intraday in the Dow. If this occurs the Gann 3-Day Chart will turn down and this would be a signal that some sort of important high,at least short term, has been seen this week. If the Dow drops below 9137.90 intraday and 9159 on a print basis next week a stronger sign of a top,at least short term,will be given. The wave structure suggests that the first sharp decline could be followed by one more rally in the Dow to a new closing high in the Dow later in December. But with the Investors Intelligence bullish advisory sentiment up near a 7 year high, and the 3-Day Put/Call Ratio near its low for the year the probability of at least a short term top in this area is high. If the Dow falls below 9199.20 intraday Friday then the top may already be in. Otherwise we will leave our prior instructions to go short at 9476 on a print basis in the Dow with a stop of any close above 9644 intact for Friday.