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

To: HairBall who wrote (7173)	2/27/1999 11:03:00 PM
From: Casaubon	Read Replies (2) \| Respond to of 99985

now for a market direction question. From what I have been reading about technical analysis, changes in the primary direction of a security/index should be confirmed by volume. As far as I can tell the retracements we have seen in the markets, of recent, have not been accompanied by large volume. Could this be indicative of formation of a suppport level. Having said this, I think it's worth stating my personal opinion about the market, and others have corroborated my beliefs on this thread. The market had priced in an interest rate cut and the belief that the asian financial crisis was abating (possibly). Greenspan dispelled the rate cut and the asian flu continues. The implication is slower growth in the short to mid term. As a result of this analysis, I moved my 401K out of stocks and into bonds. Now, my question is this: why should we be fearing a large retracement/bear market, as opposed to consolidation and support formation?