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

To: Lee Lichterman III who wrote (8166)	3/14/1999 10:34:00 PM
From: HairBall	Read Replies (2) \| Respond to of 99985

L3: Well, I thought the humor had become a little weak. I should have know that I could rely on you to come up with some new formations...<g> tire tenderized turtle meat Is that bearish or bullish...<g> I will have to come up with a new "title" for these non humorous chart interpretations. Donald already has the best "title"...<g> Maybe..."Charter is as Charter Does"...or..."Life is like a box of Trend Lines, you never know when one is going to Hold"!!! Regards, LG

To: Lee Lichterman III who wrote (8166)	3/14/1999 11:57:00 PM
From: Smooth Drive	Read Replies (1) \| Respond to of 99985

Good Sunday Evening All, The DOW INDUSTRIALS closed down – 21.09 points at 9876.35 but up 140.27 points or 1.44% for the week. It hit an actual high of 9958.77 and a theoretical high of 10042.58 on Friday. The 50 X 150 P&F chart is of course at an all time high, and just keeps diverging with our number one long term leading indicator, the New York Stock Exchange Bullish Percent Index (NYSEBP). TRANSPORTS closed up 9.86 points at 3267.51 and down – 45.28 points or – 1.37% for the week. UTILITIES closed up 2.94 points at 304.51 and that helped the weekly close up 3 points or .99%. The S&P 500 closed down – 3.09 points at 1294.59 and up 19.12 points or 1.50% for the week. The NAZ closed down – 30.72 points or 1.27% at 2381.53 but up 44.42 points or 1.90% for the week. The NDX, which has a new trading vehicle with the symbol QQQ, closed down 34.78 points at 2008.96 but up 39.09 points or 1.98% for the week. As I've previously discussed, index charts (regardless of their construction) are usually bullish at the top and bearish at the bottom. If one had no conception of the overall market, they would find the DJIA P&F chart a thing of beauty: 9950 + X 9900 + X 9850 + X 9800 + X 9750 + X 9700 + X 9650 + X + 9600 X + X X + 9550 X O + X O X 9500 X O + X O + X 9450 X O X X O + X 9400 X O X O 2 X O 3 X 9350 X 1 X O X O X O X X X O X O X 9300 X O X O X O X O X O X O X O X O X O X 9250 X O X O X O X O X O X O X O X O O 9200 X O X O O X O X O O X O 9150 X O X * O X O X O X 9100 X O X * O O O 9050 X O X X * 9000 X C X O X * < Bearish Support Line 8950 X X O X O X * 8900 X O X O O X * 8850 X O X O X * 8800 X O O X * + 8750 X O X * + 8700 B O * + 8650 X X * + 8600 X O X * + 8550 X O X + * 8500 X O X + * 8450 X O X + * 8400 X O X + * 8350 X O + * 8300 X + 8250 X + 8200 X + 8150 X + 8100 X + 8050 X X + 8000 X O X + 7950 X O X + 7900 X O + 7850 X + 7800 O X + 7750 O X + 7700 O X + 7650 O X + 7600 O X + 7550 O X + < Official Bullish Support Line 7500 O X + 7450 O + + Long term Bullish (trading above the active Bullish Support Line) and short term bullish (on a double top buy signal that occurred at 9450). Its vertical price objective off the bottom is ((53)50)+ 9100 = 9850. Its vertical price objective from the first breakout is ((83)50)+ 9100 = 10300. The Dow Jones Utility Average just gave an ascending triple top buy signal (but it is well below its high reached back in Oct). 322 X 320 X O 318 X O 316 X O X * 314 X O X O X * < Bearish Resistance Line 312 X O X O X X O * 310 X O X O X O C O * 308 A O X O X O X 1 X * 306 X O X O X O X O X O * 304 X O X O X B O O X O * X 302 X O X O X O X O O X * X 300 X O O X O X O X X O X 298 X O O 2 X O X O X 296 X O X O X O 294 X O X O X + < Bullish Support Line 292 X O X O X + 290 X O X 3 + 288 X O + + 286 X + 284 X 282 X 280 X 278 X 276 X 274 X 272 X 270 This chart is once again long term bullish (trading above its Bullish Support Line) and short term bullish (on a double buy signal that occurred at 302). It bullish vertical price objective off the bottom is ((63)2)+ 288 = 324. But, I don't think there's a chance of that happening at this time. The DJUA always leads its big brother the DJIA. The Utility Average peaked back in Oct but the Industrial Average is currently reaching new tops. All this is going on and the NYSEBP is doing nothing in Bear Confirmed status. That is, of the approximately 2000 NYSE equity stocks that make up this indicator, new buy signals are not occurring to cause a reversal. How can that be with the DJIA reaching new highs? It's classic divergence with a very thin based rally. Same with my second long term indicator,the stocks above their 30 week moving average bullish percent chart. Our two short term indicators are oversold and have reversed up - but that doesn't excite me much at this time. I'm still long and short term bearish, and will change when the indicators change. Take care, Eric