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

To: bearshark who wrote (9217)	3/26/1999 9:00:00 AM
From: Lee Lichterman III	Respond to of 99985

I actually have the XAL (Airlines) as one of the stronger sector indexes right now FWIW. I figure it could gain another 10 points or so i na good market, the DRG could make 20, and the RLX might tack on 25. The problems in the market right now IMO are in the other sector index charts. CWX (software)and XCI (computers)aer at resistance lines, The internet IIX is already stretched again on indicators showing almost over bought, XNG has had a flat top the last 4 days trying to get over resistance and failing, CEX (Chemical), HCX healthcare and IUX (INsurance) all fell below a support line that is now resistance and failed to get over it during yesterday's bounce implying further weakness. The SOXX has 2 resistance lines one around 370-375 and the other at 390 and the TXX S&P tech index is at the upper fork tine and should get bounce down again. With this many indexes at resistance points and showing weakness, it will be hard to have much more upside immediately. I did see a few bullish signs yesterday but I also saw some bogus runs. What on earth would make PG rally the way it did yesterday other than to prop up the indexes? BWDIK, Lee

To: bearshark who wrote (9217)	3/26/1999 9:45:00 AM
From: Terry Whitman	Read Replies (2) \| Respond to of 99985

>We have had the divergence between the INDU and the TRAN for quite some time now. I guess we just have to remain on the alert to the possibilities< That was all I really wanted to say, Bearshark. Have heard before that the Transport component of Dow Theory may longer be valid, since the economy is much more Service based than in the past. Folks bring up the argument that with the internet, and communications advances , etc.- that transportation is no longer that important. Well my answer to that is- we've had the telephone for a very long time- and people still rely on transportation of goods, and people as much as ever, so I don't think much has really changed. Beware of those four little words - "It's different this time". We usually find out that it's not in the end. It remains to be seen. Regards, TW