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

To: Casaubon who wrote (8953)	3/24/1999 12:32:00 AM
From: Greg Jung	Read Replies (2) \| Respond to of 99985

The Jerry Favor quote would be symptomatic of a "market broadening", I suppose, which all the talking heads seem to be hoping for the Dow must first decline from a high and reach a short term low. We will then note the net declines,or the difference between declines minus advances,for that same day. The Dow will then rally. That rally can last as little as 1 day to several days. The Dow will then decline below the prior closing low but on this decline to a new closing low the net declines for the day are less than they were at the first low. This generates the Buy Signal. So, the big guys will come down as will everyone else, then come down again after a bargain-hunter spree, but by the next time down there would be more conviction in the holders of the secondaries.