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

To: HairBall who wrote (15917)	6/4/1999 1:01:00 PM
From: Bull RidaH	Read Replies (1) \| Respond to of 99985

Larry, This rally looks like a continuation of the upside correction from the 5/26 lows, and not the beginning of the next big leg up. I thought the corrective was taking the shape of a contracting triangle a couple days ago, but the breaking of 1305 on the upside today changed that mindset. It now looks to be a standard expanded flat corrective from the 5/26 lows, and we're in the final stages of wave c of this corrective wave 4 from the 5/13 beginning of this 5 wave move down. the key number for this c of 4 rally to be held below is 1321 SPX. That number should not be penetrated very far for very long, if at all. Once this rally ends, Wave 5 down will begin, with 1193.50SPX in its sights. The wave 5 selloff should begin on Monday, as we have a Bradley turn due in this timeframe. A 36 day cycle high will be due on Wednesday, giving further selling propulsion, and futures contract switchover day is next Thursday. Contract Switchover week historically gives the most bearish price action of every quarter. This rally looks like a great shorting opp with July puts the best option vehicle. Regards, David