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Peter Namtvedt wrote:
>
> At 11:11 PM 1/28/98 -0500, Donald Thompson wrote:
> >Gwenn Ael Gautier wrote:
> >I read this as either distribution since October, or congestion along
> >the way. If we break 1000 on the SP, and the floor guys will certainly
> >love to do this, and then hold it for three minutes, floor saying is
> >that chances are 1000 will hold for 3 hours, and then three days. I'd
> >bet for 3 weeks minimum up, next, this move is too complex to be a
> >reversal. BUT THAT IS ONLY AN OPINION.
> >>
> >> Gwenn
> >
>
> Why would 1000 on the SP be an important point (or 8000 on the DOW)? What
> is special about these round numbers?
> petena9090@xxxxxxxxxxxxxx
There is a floor rule which is called "first through the even". grant Noble
details this in his book, I believe. Round numbers bear natural attraction,
and
once reached, psychology changes, going from desire to accomplish or achieve
goals, to the sense of accomplishment, with either complacency which can
induce a runaway market, or fear of letting profits go, which will generate
intense profit taking.
Gwenn
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