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

To: Daflye who wrote (6572)	2/17/1999 10:05:00 PM
From: HairBall	Respond to of 99985

Daflye: Major averages resting right on 50dmas. I suggest you look at my charts at the MDA Chart Site at: cp-tel.net I think you will find most below there respective 50 day SMA. The RUT has not only completed a rounded top formation but it has significantly fallen through both its 50 and 200 day SMA. The TRAN never made a new high off the Oct 8, 98 rally and is testing major support at the both the 50 and 200 day SMA. The UTIL has negated a bullish chart formation and not only fallen through its 200 day SMA but penetrated a long term support trend line. However, it has managed to close back above that support line after two consecutive closes below. The COMPX broke through the lower rising support line of its previous trading channel two weeks ago. It has since started rolling over falling through its 50 day SMA. The DJI is still trading in a bullish formation. Since it lagged in the rally it takes no brain surgeon to recognize why it is not falling rapidly as is the COMPX. The COMPX and the RUT are in oversold territory, but they could stay there for a few days. I would defer to Donald's "guitar" for such reads. I suspect this pullback is not over. Regards, LG

To: Daflye who wrote (6572)	2/17/1999 10:13:00 PM
From: donald sew	Read Replies (1) \| Respond to of 99985

Daflye, I only have a CLASS 1 BUY on the NAZ, not the whole market. A CLASS signal works best when all the major indexes are also a CLASS signal or close to it. I feel that the highest that the DOW could get is around 9350. Sure it could head straight down, but while watching my technicals a strong selloff has not yet started in a CLASS SELL status. The index could selloff after a short runup of 1 day, but there should be some sort of bounce even if it is small. seeya