Re: [RT] fed is finnally VERY acomodating in m3

["Earl Adamy" <eadamy@xxxxxxxxxx>]

Thanks for posting some very interesting statistics.

There has been a lot of speculation regarding a rally here, especially a Fed
induced rally. Further, there have been lots of statistics  bandied about
showing the near-certainty of a much higher S&P 500 3 to 6 months from now
based on the recent rate cuts. While I'm inclined to think we will have a
rally, if for no other reason than to correct the recent w.3 decline, we
have made precious little headway in that regard. Two events must occur for
a real rally to take place:

1) price must get above the red line and close there - today's action did
manage to close above the red line but turned tail and closed lower. the
good news is that price remained above the middle of the channel

2) price must move above the green line and then manage to contain any
decline to the range above the red line

While my breadth oscillators are screaming bullish and VIX had a nice rise,
all is for naught until price manages to complete the basics of Rally 101.

Earl

----- Original Message -----
From: "Gitanshu Buch" <onwingsofeagles@xxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxx>
Sent: Tuesday, January 09, 2001 9:26 AM
Subject: Re: [RT] fed is finnally VERY acomodating in m3


> Here's a lookback to risk/reward in SPX after the first fed ease.
>
> Gitanshu
>
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