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

To: briskit who wrote (14184)	5/17/1999 10:10:00 PM
From: Smooth Drive	Respond to of 99985

Hello Mike, >>Since the DOW touched below 11850 this morning does that constitute a reversal into the O column, and if so what does that signal? Are there any signals of note on P&F charts that come to mind here? The short answer is fine since I know you have stuff going on. Mike<< I'll assume you meant 10850. The intermediate type of end of day point & figure charting I primarily practice is concerned with the daily high and low. The current DJIA P&F chart is/was in a column of O's. So -- the first thing we ask is "Did it go lower today"? It did, by three boxes, and generated a double bottom sell signal making the chart long term bullish and short term bearish: 11150 11100 X X 11050 X O X O 11000 5 X O X O 10950 X O X O X O 10900 X O X O X O 10850 X O X O O 10800 X O O < Double Bottom Sell Signal 10750 X X * O 10700 X O X * 10650 X O X * 10600 X O X * + < Short Term Uptrend Line 10550 X O X + * < Bearish Support Line 10500 X O X + 10450 X O X + 10400 X O X + 10350 X O + 10300 X + 10250 X * 10200 X * 10150 X * 10100 X * 10050 X * 10000 X * 9950 4 9900 X 9850 X 9800 Besides the double bottom sell signal generated today, the sell signal also generated a modified shakeout pattern, which is depicted by the two equal tops at 11100 and then the subsequent sell signal. Also, it's common to find support at not only the box that a previous column of O's ended at (10800) but at the highest X as well (10700). There will also be support at the trend lines. Take care, Eric