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

To: Les H who wrote (7388)	3/3/1999 1:45:00 AM
From: Moominoid	Respond to of 99985

The area marked on the this chart in 1994 is after the main correction basically the subsequent bear market period. http://decisionpoint.com/ChartSpotliteFiles/ChartSpot14.html In 1990 it is the pre correction period. So it doesn't really say a lot about what happens next I think. On the chart the most analogous situation would be the intial part of the recovery in 1990 as we've already been at a bottom lower than the circled areas in 1990 and 1994. David

To: Les H who wrote (7388)	3/3/1999 2:06:00 AM
From: Smooth Drive	Read Replies (1) \| Respond to of 99985

Good Evening All, The DOW INDUSTRIALS closed down – 27.17 points at 9297.61 and they are down – 246.81 points or – 2.59% from a week-ago Tuesday. They hit a high of 9421.21 and were up a total of 96.43 points -- and caused a reversal up in the 50 X 150 P&F chart, but gave it all back and then some at the end. TRANSPORTS are the only bright spot of the DOW and they were up 53.20 points at 3279.06 or 1.65% and a bit more at 57.35 points or 1.78% for the week. UTILITIES closed down - .30 points for the day at 290.72 and down – 5.55 points or – 1.87% for the week. The Utilities P&F chart has dropped down another box and is continuing to show weakness. It topped at 322 on 10/07/98 and leads the DJIA around like a well-trained dog on a leash. The S&P 500 closed down – 10.66 points at 1225.5 and is also down – 45.68 points or – 3.59% for the week. The NAZ finished the day down at 2259.03 for a daily loss of – 36.14 points or – 1.57% and down a big time – 117.32 points or – 4.94% for the week. The NAZ closed within 10% of its high and low range added to its low, and has an 85% chance of a lower low tomorrow. Some folk's are talking about shorting the SPY. For P&F charting and educational purposes only (no recommendation of any kind being made) let's look at a small portion of my SPY handchart as follows: + < Bullish Res/Line 130 + 128 X X X 126 1 O X O X 124 X O X O X 122 X O 2 120 + C * 118 X + X * 116 7 O + X * + < Bullish Res/Line 114 6 O + X + 112 4 O + B + * 110 X O + X + * < Bearish Support Line 108 X 8 + X + 106 3 O + X X 104 X O + X X O + X 102 X O + X X O X O + X 100 2 O X X O X O X O X X 99 X O X O X O X O A X O X 98 X O X O X O X O X O X 97 X O X O X O O O X + < Bullish Support Line 96 X O X O O X + 95 O X O X + 94 9 O X + 93 O + 92 + 91 + 90 This chart bottomed at 93 on 10/08/99 and reversed up the next day. It is still long term bullish (trading above its Bullish Support Line) and short term bullish (on a double top buy signal that occurred at 102 on 10/15/98). However, if one was inclined to short the SPY because our two primary long term leading P&F indicators, the a) New York Stock Exchange Bullish Percentage and the b) Stocks Above Their 30 Week Moving Average are in Bear Confirmed status and our short term indicators are oversold but never the less still in down columns -- then one could: Go now and place a buy stop order at 130 or wait for a double bottom sell signal at 120 with the same stop at 130. Horizontal support at 122, and then nothing until 99. Trend line support at 116, 112 and 97. Take care, Eric