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

To: HairBall who wrote (1164)	12/10/1998 10:35:00 AM
From: John Sacz	Read Replies (1) \| Respond to of 99985

More on H & S DJ30 top: Edwards & Magee require a 2% break of the neck line, to the down side, to complete the formation. That's at the 8700 area, a level that has been mentioned as a critical area by Don and others. It's also a 38% retracement of the latest up leg. If the H&S is confirmed, the price target according to Edwards & Magee is in the 8000 area. Sacz

To: HairBall who wrote (1164)	12/10/1998 11:41:00 AM
From: donald sew	Respond to of 99985

INDEX UPDATE -------------------------------------- This market is really getting me confused - it is really iffy. I am changing my position slightly as to the timing. So far my STAIRSTEP in the 8840-9100 range is holding, however todays lows exceeded yesterdays lows to the downside which implies further downside. I have to correct myself, since I have been calling teh stairstep at 8900-9100, but after checking the DOW got as low as 8840 last Friday, which I did not realise due recent problems with my charts. What is interesting is that some of the stocks I have been watching are already in the OVERSOLD region per my short-term technicls, and the DOW actually entered the lower midrange. If last Fridays lows do not hold (8840) then the DOW should test the next support at 8750 range and this STAIRSTEP will be resolved. I originally thought that we would see a bounce today, but now it appears that such may be delayed 1-2 days, so this pop I was expecting today/tomorrow may take place tomorrow/MONDAY, or even later on next MON/TUE. In light of the weakening market internals, I feel any pop to the upside should be limited to the 9100-9200 range(with strong resistance at 9150). EDIT: If 8840 holds the downside,I am expecting that the upper end of the STAIRSTEP(9150) should still hold, but that it may take longer than expected to resolve this stairstep. So far the DOW has been trading in the 8840-9100 STAIRSTEP for 5 days. Again, this market is very hard to read as to timing it.