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

To: HairBall who wrote (15010)	5/26/1999 1:25:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 99985

LG and all, due to my computer problems i was once again unable to update the MDA sentiment page. in fact i only came back on-line just now. the only development worth noting was the liquidation of almost 60,000 open OEX call contracts, a strong hint at a short term recovery, which we seem indeed to be getting today. nevertheless, i do not yet trust this rally. investment newsletter writers are still over 60% bullish and this surfeit of bullish sentiment needs to be taken out, which means we should see more selling in the near future. the DOT is now sitting near the 50% retracement level, and should this level not hold, i fear that a very nasty downturn for the market as a whole might be forthcoming. clearly the (DOT)triangle has resolved to the downside, and i don't think we have seen the end of this move.for the moment the upper level of jan.-march consolidation rectangle of the SPX seems to have offered support, but i think that the 50-day EMA has now become short term resistance, which if true is a further indication of coming weakness. regards, hb