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

To: HairBall who wrote (5408)	2/4/1999 9:38:00 AM
From: StockOperator	Read Replies (1) \| Respond to of 99985

LG, You're right. Looking at stochastics on the monthly chart on the NAZ late 95 it definitely hit an extreme. However, look at the whole year. According to my chart the oscillator was in extreme territory in July of that year around 1000. But yet prices continued to rise through May 96 when the index hit 1252. June of course was the beginning of correction. So these things can stay overpriced for some time. But still there is no way the NAZ can keep up this torrid pace. Here's a post from the big kahuna thread that warrants keeping an eye on: Message 7650269 Bill's observation is pretty accurate. My read on the VIX chart is pretty much in agreement with his. There are three months of higher closing prices on the chart - with not much overhead resistance at these levels. I do not necessarily agree with his call for a 20-25% correction. However, it could definitely be a big speed bump along the way. I think it depends on how things play out over the next couple of weeks with all the avgs, including the VIX. Worth keeping an eye on. Good trading SO