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I like combining chart pattern analysis with other technical indicators.
Seems to me that the Dow pattern is even more problematic given the
trendline break that took place yesterday on the Nasdaq composite. (The
Nasdaq had been making new highs recently even as the DowInd had been
forming the wedge.) What we're looking at then is the breakdown of the
DowInd plus the breakdown of the market leading Nasdaq composite.
I concur with everything posted about the support areas for the Dow. The
Nasdaq support areas are relatively clear also.
Steven Buss
Walnut Creek, CA
sbuss@xxxxxxxxxxx
-----Original Message-----
From: Greatelto@xxxxxxx <Greatelto@xxxxxxx>
To: roffey@xxxxxxxxxxxxxx <roffey@xxxxxxxxxxxxxx>; metastock-list@xxxxxxxxx
<metastock-list@xxxxxxxxx>
Date: Friday, October 17, 1997 6:11 PM
Subject: Re: Dow Update
>Clive....
>
>I agree with your assessment that the group seldom looks at chart patterns,
>the old basic technical analysis approach. I would be curious to know if
>there are any "oldtimers" in our group who rely on visual chart pattern
>interpretation. If so, why don't you speak up....maybe we can get a
dialogue
>going.
>
>Regarding your wedge pattern comment on the DJIA, going a step further, if
>the DJIA does not hold the 7580-7600 area, it breaks down from a descending
>triangle which gives a count to the 6900 area. I am not saying it will do
>that, but the pattern is there if it does.
>
>It is interesting that the blue chip DJIA has been outperforming the NYSE
>Composite Index for about three years now. Recently, this performance
>pattern has broken a long term uptrend line. This tells me a definite
change
>has taken place in the markets. The mid-cap and small-cap stocks should
now
>be the better performers while the large-cap or blue-chip stocks will
>probably be under performers. I think you can see a confirmation of this
in
>the small-cap chart patterns. Many of them are in or coming out of large
>basing patterns.
>
>Jerry
>
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