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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: HairBall who wrote (791)	12/7/1998 4:05:00 PM
From: Debra Orlow	Read Replies (1) \| Respond to of 99985

at close, all macd bearish divergences still in effect. waiting for stoch to confirm the sell. have to wait til tomorrow to see how it works out.... same time, same bat-channel.

To: HairBall who wrote (791)	12/7/1998 7:47:00 PM
From: dennis michael patterson	Respond to of 99985

Jerry Favors Analysis - Monday, December 7, 1998 8 p.m. At the highs so far today the Dow was up as much as 67 points. We then pulled back and closed up 54.58. Today's action was somewhat encouraging if not totally definative. The breadth at the close showed an unofficial 1692 advances to 1339 declines. That is not strong breadth and is a potential problem. If this rally is to prove sustainable we will have to see stronger breadth. The Nasdaq moved to new all time highs today,which is a plus. Even the Transports,which are still a longs ways away from new highs,closed up 65.66. Today's action turned the important Quarterly Chart on the Nasdaq back up. That is bullish intermediate term although it does not rule out some brief correction from this point. As we have stated the Quarterly Charts on the major indicies tend to turn up and down together,although not necessarily all on the same day. The Quarterly Charts on the Dow,the S&P 500 and the Nasdaq have turned back up.The Quarterly Chart on the NYSE cash index has not yet turned back up. For this chart to turn back up the NYSE cash would have to rally above 601.76. If we are indeed still in a Bull Market this should occur. If the NYSE cash were to exceed 601.76 and the Dow were to rally a similar percentage the Dow would rally up near or above 9454 on a print basis. We believe the Quarterly Chart on the NYSE cash index should turn up before any significant top in this time frame. If so the Dow should rally above 9400.This does not mean the Dow must exceed 9400 this week. That would be asking alot. But the odds are 9400 will be exceeded before a serious top. Any decline below 9003 on a print basis tomorrow morning would be a short term negative signal suggesting some further pullback very short term Tuesday. But if the Dow falls below 9003 then later in the Day rallies above this week's print high another short term bullish signal will be given signaling higher prices. Any rally above 1191.80 in the December S&P futures tomorrow will signal a probable rally above 9084 in the Dow. Any decline below 1177.70 in the December S&P futures will signal a probable decline below 9003 in the Dow. Last evening we stated that if the Dow was still reaching new highs after December 24 it would suggest higher prices probably at least into March or April of next year. This was because of our Lindsay Top to Top Counts. We recognize many of our newer subscribers are not yet familiar with this Top to Top Count technique,while those of you who have been with us awhile have certainly heard us explain this technique in the past. The Lindsay Top to Top Counts are one of our most reliable means of forecasting when an important short term,intermediate term or long term top in stock prices will occur. We have used it as an aid in forecasting each of the important tops this year,and last year. This hotline is not the place to go into a lengthy explanation of this technique. But we will discuss it at length in our next newsletter,which will be written this coming weekend and go out in the mail next Monday. We will explain then why we believe that if the Dow is still reaching new highs after December 24 it will suggest no final high is likely before March or April of next year. For now we will leave all instructions of last evening intact for tomorrow.