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

To: donald sew who wrote (1073)	12/9/1998 3:00:00 PM
From: HairBall	Respond to of 99985

donald: OT Great, I'll bring the wine...<g> Regards, LG

To: donald sew who wrote (1073)	12/9/1998 6:50:00 PM
From: dennis michael patterson	Read Replies (2) \| Respond to of 99985

Jerry Favors Analysis - Wednesday, December 9, 1998 8 p.m. At the lows today the Dow was down as much as 59 points on a print basis. The Dow then turned and closed down 18.79 for the day at 9009.19. Our basic position remains that we look for higher prices this month. We believe the Dow will test or exceed 9400 before this month is out. However we may very well see some sort of further short term correction over the next few days before that rally begins. If the Dow sells off over the next few days we still believe higher prices are coming before the month is out. We believe that rally will ultimately carry the Dow back up near or above 9400 before the month is out.Our concern here is really over the next 1 to 2 trading days, during which a stronger correction is possible. The Bradley Indicator called for a low near December 2 plus or minus 2 days and then a rally into December 11 plus or minus 2 days . However the Cycles called for a low near December 2 plus or minus 1 day and then a rally into December 7th or 8th and then a pullback into December 11 plus or minus 1 day. From there the cycles turn up into December 23 plus or minus 1 day. So if the Dow sells off for another day or two it will not alter our position that higher prices are coming this month. It will merely mean that a short term low will be seen near December 11 instead of a high. This could allow for a sharp decline between today and Friday but even if that were to occur the odds would favor a bottom before the week was out and a rally back above 9400 before the month of December was out. We will hold current positions and give you new instructions tomorrow evening.