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Re: MKT - INDU

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<DIV><FONT size=2>Adding a volume McClellan oscillator to the chart adds 
additional comparison to&nbsp;the period following the '98 high.&nbsp; There was 
a very clear divergence between EODCV and the volume oscillator.&nbsp; Then the 
Osc dropped through zero between points A&amp;B.&nbsp; Then it found an interim 
bottom at point C followed by a rally back to the Zero line at point C' where it 
is as of Friday's close.&nbsp; Of course history does not repeat itself exactly, 
but we can see what is in store if Friday's rally was infact a knee jerk 
reaction and the selling resumes.</FONT></DIV>
<BLOCKQUOTE 
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
  <DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
  <DIV 
  style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B> 
  <A href="mailto:bobrabcd@xxxxxxxxxxxxx"; title=bobrabcd@xxxxxxxxxxxxx>ROBERT 
  ROESKE</A> </DIV>
  <DIV style="FONT: 10pt arial"><B>To:</B> <A 
  href="mailto:realtraders@xxxxxxxxxxxx"; 
  title=realtraders@xxxxxxxxxxxx>RealTraders</A> </DIV>
  <DIV style="FONT: 10pt arial"><B>Cc:</B> <A 
  href="mailto:realtraders@xxxxxxxxxxxxx"; 
  title=realtraders@xxxxxxxxxxxxx>realtraders@xxxxxxxxxxxxx</A> </DIV>
  <DIV style="FONT: 10pt arial"><B>Sent:</B> Saturday, August 14, 1999 9:48 
  PM</DIV>
  <DIV style="FONT: 10pt arial"><B>Subject:</B> Re: MKT - INDU</DIV>
  <DIV><BR></DIV>
  <DIV><FONT size=2>Taking the cumulative volume lows on 981008 and 990304 and 
  using them for the Midas Top Finder Start(S) and Center(C) points, the Top 
  Finder planted its X at 990719.&nbsp; EODCV peaked out on 990716.&nbsp; Using 
  990304 as a pivotal date to draw trend lines through originating at reaction 
  points in the&nbsp;fall correction of 98 gives potential support&nbsp;lines 
  for what lies ahead.&nbsp; So far B99 and C99 have had reactions at the 
  trendlines and the EODCV has dropped back to its summer '98 highs.&nbsp; At 
  the moment there is a gross divergence with price still in denial of 
  cumulative volume.&nbsp; If there were a proportional correlation of price 
  with volume then price would also fall back.&nbsp; The big question is will it 
  play catchup and find support at S3 10159(a 815 point drop) on the Midas chart 
  or the summer '98 high of 9337.97(a 1636 point drop).&nbsp; Or will&nbsp;the 
  INDU take the proportionate route of dropping the same percentage of the range 
  from '98 fall low to '99 summer high as has the EODCV.</FONT></DIV>
  <DIV><FONT size=2>(11252 -X)/(11252-7539) =(21607 - 18958)/(21607 - 12795) 
  where X calculates out to be INDU = 10136.&nbsp; That would give us an 838 
  point drop from&nbsp;Friday just to catch up with EODCV.&nbsp; There would 
  definitely be an additional negative volume slippage so we then get into 
  Arch's 1000 point drop, but not necessarily in the same time frame.&nbsp; 
  </FONT></DIV>
  <DIV>&nbsp;</DIV>
  <DIV><FONT size=2>BobR</FONT></DIV>
  <DIV>&nbsp;</DIV>
  <DIV>----- Original Message ----- </DIV></BLOCKQUOTE></BODY></HTML>
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