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

To: Les H who wrote (13301)	5/10/1999 11:07:00 AM
From: StockOperator	Read Replies (3) \| Respond to of 99985

Les, IMO, those failed breakouts in the NAZ that you spoke about and the patterns that have developed on the charts because of them is the reason why I posted my concern over the weekend. According to my read on things here the market is GOING to attempt to breakout towards new highs. The action in IBM and the RUT have clearly stated that last Friday. Besides the DOW and transports have already started to assault those old highs last week. But it is the position of the NAZ overall, especially the LONG TERM trend that tells me that this index is at a crucial point where it MUST start to breakout here. When I combine this interpretation with the WEAKNESS in the intermediate term trend in some of the high tech generals, plus the fact that interest rates are rising and imo, have not seen their highs yet. I am concerned. Remember I did not say it was going to happen. But for me to change my opinion here I would have to see an significant reversal in many of these tech stocks (with price stability), reversing this intermediate term weakness. So I am looking for the markets to attempt to break out of this trading range. What happens while this market attempts this breakout is what I will be keenly watching. My call here is to be cautious that's all. Regards, SO