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

To: StockOperator who wrote (12314)	4/28/1999 10:30:00 PM
From: bearshark	Respond to of 99985

Your note reminded me that Dow Theory calculations are based on closing prices.

To: StockOperator who wrote (12314)	4/29/1999 11:31:00 AM
From: StockOperator	Respond to of 99985

We talked about it all week saying the the interest rate environment was the key. I mentioned previously that I thought there was going to be some piece of news that would have an impact on rates. Yesterday I mentioned that the Utilities were breaking out of a major trading range, today they continue to march ahead! Falling rates will have an immediate impact on the markets overall. Look how that government report altered the market's perception of things this morning. The futures were pointing lower - the charts were pointing lower. They both turned on a dime. With many of the chart patterns not in a position to collapse, utilities rising, the trannies breaking through short term resistance (yesterday) I still believe any weakness should be suspect and watched carefully. With many of the key indexes having problems getting through key resistance areas, yesterday's close was the PERFECT setup for prices to go lower. So far that selling as been tame. Because of that there are at least two ways to view what is happening here. Failure to break to the upside implies weakness, BUT failure for the markets to take advantage of a perfect opportunity to sell-off and collapse implies STRENGTH. Now of course the day is early. The market has shown us time and time again that it is the end of the day that counts. My levels are still there. I just wouldn't put it past this market to take off to the upside here. Good trading. SO