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

To: donald sew who wrote (1234)	12/10/1998 6:17:00 PM
From: Gary Wisdom	Read Replies (1) \| Respond to of 99985

Hey Don, did you see that CCL is being added to the S&P 500? There goes the short.

To: donald sew who wrote (1234)	12/10/1998 6:46:00 PM
From: bobby beara	Respond to of 99985

Donald, I did a calc on that support using Mr. Fib -g- Close enough for government work -g- . I believe the breadth divergences and the sentiment indicators are calling probably for a deeper correction than .382. I am going to go back over Oscillator history and see if I can find an SPX top with the Oscillator above 150 and then a secondary test with the Oscillator in negative territory. This is a glaring negative along with put/call ratios, and a broadening internet mania that has really made april and julys mania look like puppy -g- Another GLARING divergence most T/A's don't regard is the Angle of the Dangle of the US dollar index from the july/august top to the December top. Liquidity?????? I hear a giant sucking sound with the EURO around the corner. bb Oh ya it's all Jay's phfault -g- Message 6734167

To: donald sew who wrote (1234)	12/10/1998 6:51:00 PM
From: stockycd	Respond to of 99985

donald and ALL, The midpoint of my Fibonacci is 8428 for the DOW. The lower point is 8195. As I mentioned yesterday, a break of 8954 intraday would lead us to 8729 before some consolidation starts. We could see this as early as tomorrow. But the support at 8799 may hang us up a day or so. My target short term lows for the major indexes is as follows: (any fall below these targets are very possible but cannot be predicted at this point.) DJIA-8729 Transports-2952 Nasdaq-this one is tough. It's so overbought that my indicators are telling me 1862, but realistically I come up with 1924. If we fall through 1924, LOOK OUT BELOW! Consolidation will start next week, Tuesday or Wednesday. I can't tell how long it will last now, but by Monday it should be clearer. Remember that a down week this week will confirm my weekly charts that I mentioned last weekend. This selloff is looking a lot like the selloff in July/August. On 7/31/98 we had a intraday low of 8828 vs 8824 today. 8/3/98 was the next down day, but not much. 8/4/98, the bottom fell out. We were not in the same shape technically then as we are now, we were better off technically then. My opinions only... Chris

To: donald sew who wrote (1234)	12/10/1998 6:52:00 PM
From: dennis michael patterson	Read Replies (3) \| Respond to of 99985

Jerry Favors Analysis - Thursday, December 10, 8 p.m. Last evening we stated that while we still expected higher prices this month we believed the Dow could sell off further over the next couple of days. The Bradley forecast the November 24 high perfectly, and it forecast the December 3 low within 1 day. The next turning point from the Bradley was due near December 11,plus or minus 2 days. Technically the Bradley forecast a high in that time frame. However the Dow has actually declined into this Dec. 11 plus or minus 2 day time frame. We believe the Bradley is inverting in this time frame. An inversion occurs when the Bradley forecasts a high for a certain time frame and instead the Dow reaches a low in that time frame, or vice-versa. Inversions in the Bradley occur about 30% of the time. An inversion in the Bradley with a low occuring near December 11 instead of a high would agree with the Cycles. The Cycles call for a low near December 11 plus or minus 1 day and then a rally into December 23 plus or minus 1 day. We believe this is the most likely scenario from here. If we are correct we should be near some sort of low,or within a day or two of that low. We should then begin another strong rally into December 23 plus or minus 1 day. Technically the Cycles call for a rally from December 11 plus or minus 1 day into December 18 plus or minus 1 day. They then call for a brief decline into December 21 and a high near December 23 plus or minus 1 day. After the high near December 23 plus or minus 1 day the cycles call for falling prices into January 4 plus or minus 1 day. At the lows today the Dow was Dow was down as much as 185 points. We closed down 167.61. We must allow for still lower prices Friday but this does not alter our position that we are near the next short term low and that the Dow should soon begin a rally into December 23 plus or minus 1 day. The Dow may test 8700 before the low but that would not alter our position. Stock traders and mutual fund switchers remain long with the same stop. Short term option traders we will give you a signal when to return to the long side.