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

To: Arik T.G. who wrote (7392)	3/3/1999 8:29:00 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 99985

Arik and all, I'm still watching the RUT, hoping and praying that we see some form of orderly reallocation from the toppy big caps to smaller issues. (However, I am not under any illusions.) The RUT is trading just below its 200 day moving average and about 30 points below its 400 day MA and the daily MACD looks to be trying to turn positive. I admit that we have a possibility of heading back down to 330 support or possibly to the 300 level which would create a tight W formation. But it would appear that RUT will either form the right hand shoulder first and try to break out to the upside. Short term I believe the RUT will attempt to push through its 200 MA and beyond. The strength of this attempt should help to provide us a forecast of whether we see a sector rotation commence or whether it foreshadows another crash. The RUT has been beaten to death as we all know, but the values are still in that sector. The growth is still in that sector. And the RUT continues to be less exposed to overseas turmoil than the big caps, with the kicker that Y2K inventory building should boost profits for small caps to boot. But I agree with many out here that the end of March will likely be the decision point about where we are ultimately heading. Regards, Ron