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

To: bobby beara who wrote (15329)	5/29/1999 12:26:00 PM
From: KM	Read Replies (1) \| Respond to of 99985

Oops. Barrons cover: Amazon.bomb Correction over?

To: bobby beara who wrote (15329)	5/29/1999 1:31:00 PM
From: j.o.	Read Replies (1) \| Respond to of 99985

Hey there bobby - I wouldn't rule out that the nets snap back up a little bit on a short squeeze, but I think that's what it will end. On DELL, for instance, I can conceive of the market trading back up to 38 or so - where it will bash it's head against the overhead resistance coming from where I have the long-term (but very "unclean") uptrend. The 50-d EMA will also be making its way down there to offer some resistance. Overall I consider the SPX comparatively easy to read - and there I will watch any attempts to rally above 1320 very closely. I don't think that we'll make it that high. We need to complete the wave 5 down, and wave 4 is nearing the same "lifetime" as wave 2 here. I would expect a possible attempt to squeeze the markets higher after the long weekend, but expect it to fail quickly and lead to a resumption of the downmove. We should take out 1280 pretty easily and move on down to our target level of between 1250 and 1225. Still looks the most likely to me. Like James Hopkins said - the trend is down now. This is merely a way for the pros to unload some stock at better levels before slashing apart the 1280 support. I will stay short here - though I can't rule out a couple of very short-term upside plays depending on price movement Tues. Very short-term like 30-minutes or less on a break. In general I will look to add to my shorts over the course of the day. Good luck! j.o.