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

To: donald sew who wrote (4755)	1/27/1999 5:09:00 PM
From: Stephen	Read Replies (2) \| Respond to of 99985

Don, ML have been negative on the market for a few weeks and didn't call the recent rebound. Their call has therefore not changed too much. Regards Stephen

To: donald sew who wrote (4755)	1/27/1999 5:37:00 PM
From: HairBall	Read Replies (2) \| Respond to of 99985

Donald: The rising wedge ascending trend line can be looked to for resistance, however I believe a new formation is in play, IND/DJI falling wedge. The DJI bounced off its upper descending trend line intraday today and headed back down. I have not down loaded my "end of day data" for today, so I can not report or post my latest indicator readings. To view this formation look at the DJI (Dow Industrials Actual Data) 60-Minute Interval Semi-Log Chart. To view the upper descending trend line, connect the high of 1/11 @ 15:35 EST to the high of 1/23 @ 11:33 EST and extend to the right. To view the lower descending trend line, connect the low of 1/14 @ 14:30 EST to the low of 1/25 @ 9:30 EST and extend. Keep an eye on these trend lines. A significant move above the upper descending trend line would be the norm and would portend a continuation of the rally off the Oct 8 low. Keep in mind that the upper trend line, has room to adjust up slightly. A significant move below the lower descending trend line would be a negating break and would portend a trend reversal from the Oct 8 rally. Message 7502064 To view my IND daily chart of the above see (as of Tuesday's close): cp-tel.net Viewing the lower windowpane, the dark red trend line is the falling wedge. I extended it to the left because it projected exactly to the Nov 98 top, interesting. I suspect this formation may well be negated, time will tell. The purple trend lines are the pitchfork tines. The white trend line are the bearish flag. (This Chart is compiled from Theoretical Data and of course...Chart formations are not 100%.) I can't imagine much more upside for the COMPX (NASDAQ Composite) without some sort of correction soon. I expect at least a proportionate snap back. As the IND/DJI (Dow Industrials Theoretical/Actual Data) and NYA (NYSE Composite) have been lagging, they may well turn south with a COMPX snap back. The following charts may not be current for today at this posting, but they are still worth the view. Click on this link: decisionpoint.com and then click on the three charts noted below. - McClellan Summation Index - NASDAQ McClellan Summation - Stocks Above 200-DMA Current upward price action is not being supported. Per you UPDATE, It was interesting today to hear the analyst from MERILL on CNBC calling for negativity and that we could head back down below 8000 shortly. Equally interesting is the timing of the following reco from Goldman. I posted this “In Play” alert from E*Trade earlier today: 11:01 ETGoldman Reduces Equity Weighting: Goldman Sachs lowers equity rating in recommended portfolio from 57% to 55%. Says Brazil is immediate source of concern, as firm believes situation there has moved much closer to the "melt down" scenario in recent days. BWDIK Regards, LG