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

To: donald sew who wrote (5081)	1/31/1999 11:31:00 AM
From: HairBall	Respond to of 99985

donald sew: Looking at the IND (Dow Industrials Theoretical Data) Daily Semi-Log Chart, I am calling the spike above the trend line, on Friday a violation and a trend line adjustment for now. Why, because Friday's price action closed back inside the original formation. The upper trend line could adjust upward until it is parallel to the lower trend line, thus morphing into a bullish flag. As you know, this has occurred often as of late. We shall have to keep an eye on this one. In addition, my Sht/Med Oscillator gave a short-term buy signal Wed. However, it could reverse soon, as my NYSE Adv/Dec Oscillator looks anemic. Looking at the DJI (Dow Industrials Actual Data) 60-Minute Interval Semi-Log Chart, Friday's close was above the upper descending trend line. To confirm resolution of the formation, follow through to the upside needs to occur. However, this does not always happen the next day. The price action could oscillate above the descending trend line a day or three before continuing to move up. As long as it stays (closes) above the trend line the current formation remains intact. Note, the trend line for the formation has been adjusted up once and there is the possibility that the trend line is adjusting again. In addition, it could adjust up to but not beyond a bullish flag. See above comments regarding this. If over the next day or three, price action takes the DJI "close" back into the falling wedge formation, this would increase the possibility the formation will be negated. This is a very broad formation and if this formation is negated, (a significant move below the lower descending trend line), that may well signal a reversal of the rally off the Oct 8th low. I never use chart patterns as a solitary tool. Chart formations are not 100%. (All Disclaimers Apply) BWDIK Regards, LG