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

To: donald sew who wrote (9409)	3/29/1999 4:37:00 PM
From: StockOperator	Read Replies (1) \| Respond to of 99985

Don, As you say nothing is 100%. The patterns that have been present on the charts have been bullish. Even stocks like AT&T and IBM which have given up some of their gains the past two months, have chart patterns that indicated a break to the upside following this consolidation was highly probable. I believe that's what we're seeing now. Which means we have to be careful here for a possible bull trap. Breakouts are always the most dangerous time to be trading. The RUT and the Transports, imo, have to go along for the ride. The downward slide on the RUT this month will have a major impact on trading for the month of April. That damage done needs to be repaired in a big way. So I will looking for a broader move in all the avgs. As far as a downturn this week. I think today's close above 10,000 will cause an emotional reaction on the street. I am sure there will be many that will view this as the train leaving the station. With the tech's putting in such an impressive performance, and with stocks like DELL and CSCO being so heavily shorted. We just might see an explosive move. Remember Wednesday is the end of the month. Right now this month has given us over a 700 pt advance on the DOW. But more importantly those points also represent a breakout through that psychological 10,000 AND through the upside resistance on the chart. So it could get very interesting. I will indeed be looking for follow through by the broader market. I think the best way to do that will be to watch the individual charts of companies for signs of weakness. Once again only the market knows. Keep up the good work. SO