To: StockOperator who wrote (7044 ) 2/25/1999 10:45:00 PM From: StockOperator Read Replies (1) | Respond to
You know by the volatility in the avgs. that two opposing trends are converging on one another. The rise in prices (trend) on the avgs from the Oct. bottom is running right into the bearishness caused from poor breadth, rising rates, high valuations and almost anything else we've seen lately. And although its easy to be whipsawed out of the markets when things look their ugliest. Its the close observation of prices that can keep you from being deceived by the market. Here are some interesting things to keep in mind after the last couple days of trading: AOL and AMZN have broken out to the upside. The VIX on a weekly bar chart has clearly broken to the downside. On a daily chart the VIX reversed down as well. Despite the last two days of trading the weekly trends for the DOW, NAZ, S&P, TRANNIES, and RUT are still positive. With most of these indexes having much higher highs because of their attempted breakout. Major players like IBM and CMB reversed their declines of yesterday. MRK and FDX breaking out this week hitting new all time highs. QWST has rocketed. Look at the weekly chart for LVLT. It looks more like prices are ready to breakout not down. Even the longer term charts for IBM, DELL, CSCO and many more look set for breakouts as well. Of course a ugly day tomorrow could change the makeup of things. However, with the reversal on the VIX and on the prices on the individual companies. I believe an up day is highly probable. Which would also mean an UPWEEK.
