Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Stephen who wrote (14232)	5/17/1999 6:20:00 PM
From: Les H	Read Replies (1) \| Respond to of 99985

BOTTOM LINE ON THE MARKET. Ord Oracle. May 17, 1999 WHAT TO EXPECT NOW. The up-trend appears to be over. The fat lady has sung. We expect now the June S&P's will make an attempt to rally to fill the gap that materialized between Thursday close and Friday open. To fill this gap the June S&P's would need to rally back to 1375.00. However, we noticed recently the market has not filled the gaps completely on ever attempt. We observed that sometimes the gaps are left open by a couple of points. Therefore the June S&P's may rally back near the 1370 area and stop and leave the rest of the gap open. We noticed also some of the smaller gaps are left open but the bigger gaps (this one is a big 25 pointer) are filled. Therefore, we are bearish on the market until July, but there should be an attempt to fill the gap that materialized between Thursday's close to Friday's open before the market heads down in earnest. There are short-term bullish signs for this potential bounce. On Friday the ARMS Index closed at 1.36. Readings over 1.30 predict a bottom the next business day or two. The tick index readings reached minus 1100 Friday and minus 1130 today. Downtick readings exceeding minus 1000 appear near short-term lows. Today in candlestick charting a bullish "Counter Attack Line" was drawn. However this "Counter Attack Line" did not gap robustly below yesterday close and therefore not a strong candle signal. Looking for a bounce near the 1370 area to get short.