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The breakout of that descending triangle in the DJ Utility was mirrored in
the same kind of breakout in the other major averages. Seems to me that
these various triangle breakouts in market averages are the best technical
factor that bulls can point to.
The Dow failed that 175 points test I wrote about recently, but some other
market averages did beat their 11/5/97 high by a small margin.
With the Nikkei and S&P futures both down this morning (8am EST) it's likely
we're headed lower today. So, we have a clear trading range defined for the
market averages at various levels that are easy to determine. During the
last move down, the Dow had held the 7350 level at 7349.99. But other
indices had broken (some more than others) their significant levels of
support.
So, with regard to your question: I have no idea about where we'll be next
week. What will turn out to be more important? The triangle breakout that
took place on Monday or the breaking of support levels that took place last
week (Wednesday I believe off hand).
My personal trading strategy is evolving to trade the range but to be
extremely careful as the averages approach their respective levels of
support and resistance. Upon breakout and/or breakdown, the moves could be
significant. Keeping an eye on the various moving averages (25, 50, 100,
and 200 day) and where the indices are vis-a-vis these indices would appear
to be important.
Steven Buss
Walnut Creek, CA
sbuss@xxxxxxxxxxx
-----Original Message-----
From: Greatelto@xxxxxxx <Greatelto@xxxxxxx>
To: metastock-list@xxxxxxxxxxxxx <metastock-list@xxxxxxxxxxxxx>
Date: Tuesday, November 18, 1997 5:23 AM
Subject: DJ Utilities
>Looks to me like the DJ Utility Index broke to the upside today from an
>ascending triangle. As I see it the Index will challenge its 1993 high and
>then move to the 280-290 area.
>
>With the Utility Index strong, I would not be comfortable being in a
general
>bearish mood. However, at these levels I am not comfortable being a
strong
>bull either, but I lean that way.
>
>Any agreement or disagreement?
>
>Jerry
>
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