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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: bruce-l who wrote (23890)	12/3/1998 11:15:00 PM
From: Magnatizer	Respond to of 79214

bruce I will let Doug field that one. He is the master of 13 drsi on the dow. It is his speciality. ht david

To: bruce-l who wrote (23890)	12/4/1998 3:57:00 AM
From: Doug R	Read Replies (3) \| Respond to of 79214

Bruce, Thanks for the heads up. I just went over the chart and the 13 dRSI is toast. I found an intersection that looks relevant to me that the indicator just broke below today. That should pull some more of the rug out from under things here. The SMI is about to give a bit of a nasty signal also. Here's some interesting stuff on the price chart I've also looked into: The lows on 9/1 and 9/10 This is the first sign of an uptrend off the bottom of the recent correction. That first uptrend off the bottom is where the REAL money was getting back into the market. Then a line across the highs on 11/6 and 11/13. This is the last short term downtrend before the market topped out. The last short term downtrend before a top is where the real money is getting out of the market. Where those two lines intersect is where the REAL money will decide where the market is going. Then a line across the highs on 8/19 and 10/20. This is the neckline of the inverted head and shoulders that the Dow broke above to move to the latest alltime high and is where the "followers" or herd started stampeding in. That line is where the herd will decide to stampede one way or the other again. See that triangular area those 3 lines create toward the end of Dec? That's the time period and possible price range where the market will make a "decision". It will gravitate toward that area. Since it's lower than here, it's a down market until then. Between now and then the Dow may (or may not) get lower than that area. You'll notice that the "herd's" line intersects the REAL money's bullish line AFTER the point at which the REAL money will already have made a decision. It looks like much of the timing will revolve around the economic report calender as the next fed meeting approaches. As that triangular area approaches the 13 dRSI system should provide a good clue as to which way the Dow will go toward the end of the month and beyond. That in turn should also be a good clue as to what the Fed will (or won't) do. Doug R