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

To: g_m10 who wrote (14440)	5/20/1999 10:19:00 PM
From: StockOperator	Read Replies (1) \| Respond to of 99985

g_m10 and thread: g_m10: First of all sorry it took me so long to get back to you. I had a crazy day. I hope to answer your question in my post below. With the indexes sitting in a rather precarious position I have been waiting for their prices to start repairing the damage done on an intermediate term basis. Because these overall patterns are so close to resolving, EACH TRADING DAY becomes very important. Because of that any upward or downward pressure in daily prices greatly affects the intermediate term trend, which has been under significant pressure the past couple of weeks. In a nutshell the market is in a "do or die" position here in that these patterns will have to resolve themselves by breaking up or failing and breaking down. With many of the questions answered this week, prices should be stabilizing and actually should be rising, even slightly, as they prepare themselves for an assault on these key areas. Today's trading in many of the key tech stocks gave us the exact opposite. Prices almost across the board were very weak. Not something you like to see so close to the end of the week. Their weakness today places more stress on them to perform well tomorrow especially when you consider that after the close today many closing WEEKLY prices have reversed to the downside. Granted we have tomorrow, but that's my point, tomorrow has to be a good day for many issues. The VIX which has been under pressure the past couple of days reversed again after being down considerably. This index has been one that I have been paying great attention to simply because it is positioned on a longer term basis for a possible breakout - implying a possible breakdown in equities. So the market is not performing (so far) as well as I would like. What happens tomorrow will be very important to my overall analysis. Therefore, I believe the best possible way to play things here is to wait it out and see how this market responds to the precarious position that it's gotten itself in. Regards, SO