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This attachment and the next on the AMOSS are being posted with some degree
of reluctance if not disbelief. After a week of rather volatile action and
the psychological fear that seems to be present, both of these indicators
are painting a surprising picture. They may even be closer to issueing buy
signals rather than sell signals. Take the MVI for example which closed
Thursday dead on its moving average or neutral line. This line just like
the upper and lower bands provide statistical resistance and support, i.e.
momentum barriers. Picture a rubber ball hitting a wall if you will.
Don't tell me the mkt is going to bounce on Friday. The other two
alternatives are slicing through the neutral line or drifting along it
until the positive seasonality kicks in next week midweek. If the VIX Zone
score is to be of help here, it is approaching its +2 buy reversal line on
the AMOSS chart. This chart has the 20 day component on the edge of
oversold and neutral. The 5 day component is back inside neutral. The 90
day is still extremely overbought as is common in bull markets. So with
the MVI sitting on neutral and VIX Zone score approaching +2 we have to go
on a 2ndary Buy alert after the Buy from the lower band earlier in the
week. This might be a little premature, lets see what happens tomorrow.
BobR
Momentum Cycles
http://www.oextrader.com
Attachment Converted: "c:\eudora\attach\MVI821.gif"
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