To: Gersh Avery who wrote (5334 ) 2/1/1999 4:01:00 AM From: MonsieurGonzo Respond to
Gersh; RE:" MID.X -- Bear Flag ? "Shows how much of the gains in the last couple of weeks have been concentrated within just a few issues. Tom Dorsey & Co have issued some sort of 'bear confirmed' notice based on lack of breadth of the market... breadth as his measure, he is right: during the month of January, TECH went up in record fashion, but NF.X - Financials, RLX.X - Retail, and DRG.X - Drugz sectors all decayed or, simply tread water w.r.t. the S&P, which was essentially pulled along by TECH and Telco's (and not much else ) IMHO that is why MID.X is important for us to be aware of right now.Looks like it's set to bounce off support from the July peak .. but .. it sure has been just setting on that line (375 ) for a while... 6 days in a row, it has been testing that apparent support, Gersh - looks like six old crows sitting on a telephone wire smoking cigars in some old Tex Avery cartoon (^_^)This one could drop through. If it does then next support ~355 then 335 then 280-285 area. 50 and 200 ema will also provide good supports... 375 , I reckon the 50d EMA will be ~368 +/-3 perceived support; then ~360 is the next level, with the 200d EMA coming into play at around the ~345 +/-5 area. Below 340, Gersh - we're talkin' about a total breakdown of the market.Bear flag ? Descending Triangle , just the opposite of the Ascending Triangle that DJ was talking about on CSCO.Looks a lot like the MDY chart... derivatives rather than the raw index; I just put MDY up for ya too, for comparison.geocities.com Descending Triangle looks more like a Pennant , (where the perceived base is sloping downward, rather than flat; and the left edge is not a right angle), though it is damn hard to tell (and I haven't used classic geometry T/A since I was a teenager ;-) Whereas a Descending Right-Triangle is BEARISH -- a Pennant is BULLISH.! CALL Ratio BackSpread than right here, right now (if I could sell naked index CALLs) - or even a 1:1 Long Straddle from ~375 -- for one thing is certain: those crows ain't gonna sit on that wire smokin' cigars for long ! ?
