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Under normal market conditions I would agree with you having noted the same
conditions. However we are not in normal market conditions and pressure is
coming from all directions as the bubble in values, credit and derivatives
is unwound. I believe one must move to weekly charts to properly interpret
moves in the daily issues, volume, and index trends. The weekly McOsc,
OB/OS, Summation, and trends all suggest that a bottom is not in place.
Further, the weekly dollar futures chart has just gone to hell and
commodities are basing. If you want one single index to watch for sign of
top/bottom, keep an eye on the Amex Broker Dealer index which reflects the
prospects for Wall Street - yesterday it completed a .62 fib retracement of
94-98 on accelerating momentum. Even with the declines in both the S&P and
interest rates, the TBill-EarningsYield index has merely declined from
Extreme Danger Zone to Danger Zone. This is not to say that we may not get a
bit of a rally at some point, however I firmly believe we have not seen the
lows in the market - possible bottom around 6300.
Earl
-----Original Message-----
From: Proffittak@xxxxxxx <Proffittak@xxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Wednesday, October 07, 1998 8:48 PM
Subject: Re: MKT - INDU
>greetings
>
>today was the low in the market
>McCullen osc is showing a bullish divergence
>we had a volume spike on the sell off
>
>and when we visited last this lows the new lows were much higher
>we are also oversold in many daily indicators
>this one will take us to 1090-1110.(dec sp500)
>time horizon 10/13-10/23
>
>happy trading
>Ben
>p,s those of you who are not long gold and platinum may have the
oppertunity
>to get on the train tomorrow,(silver too)
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