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

To: StockOperator who wrote (14359)	5/19/1999 1:30:00 PM
From: HairBall	Read Replies (1) \| Respond to of 99985

SO: The interesting thing about rates is that in Oct 87 when the market crashed, rates spiked up to their highest point and then reversed. That spike proved to be the high from past to present. In 8/90 the month the market tanked (the last recession), rates were once again at their highs from a move that began 13 months earlier. After which rates began to fall and the 95 bull run began. Well if you connect those two points 10/87 and 8/90 that trendline runs right into where we are currently with rates - actually six percent looks like serious resistance area. So it is interesting that rates are right at a point that has proven to be devastating for equities. Looking at my Semi-Log Chart from the mid eighties, on a closing basis only, that declining trend line would project forward to 6.625% for today. Regards, LG