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Re: market_watcher post# 2786

Thursday, 06/26/2003 2:23:09 AM

Thursday, June 26, 2003 2:23:09 AM

Post# of 148479
MW & AJ,

Just curious where you are deriving Bradley Turn dates from? The reason I ask is because of what was posted on Friday the 20th by gfs_1999 from what appears to be a Jerry Favors newsletter. I have bold typed italics the area in question and would like to know if this is the accurate date or not and if so how does it effect the scenario you are looking for. I am only a moose and novice trader at best, but I am trying to gain any advantage I can get. Also the dates mentioned below seem to coincide fairly well with the pull back we have been experiencing as of late, no? TIA


Analysis - Friday, June 20, 2003 8 p.m.

Today's action was no real surprise to us one way or the other. We stated that we expected the Dow to encounter strong resistance to any rally this week near or just above 9400. The Dow reached a print high this week of 9354 and an intraday high of 9405. We closed the week at 9200.75. We looked for resistance near 9400 this week because that was where the top of our 10-Week 7% Exponential Trading Band was this week. The band is still rising weekly, and next week the top of the band should be in the 9500 area, depending on where the market closes next Friday. We would expect resistance to any further rally next week in that area.

In January we stated that the Bradley Indicator called for a low in March and an important top near June 25, plus or minus 2 days. Next Wednesday is June 25, so if we have not seen a top already, the Bradley suggests we should see that top at some point next week. We believe the odds are extremely high that we are near some sort of top. The only question is how severe will the coming decline be? In any case, if you have not begun to raise cash this week, we suggest you do so next week.

Our Gann 3-Day Chart did not turn up today. It is still pointing down, and that is a negative. The more important Gann Weekly Chart will turn down next week on any decline below 9117 on a print basis on the Dow, 1629 on the Nasdaq, 30.00 on the QQQ's and 99.24 on the Spyders (SPY). The Dow will be the most important of that group. If the preceeding levels are broken, it could mean the top due in this time frame has been seen. If the Weekly Chart on the Dow does turn down next week, only a rise above June's intraday high, which so far has been 9405, could turn the Weekly Chart back up next week, and prove we are going higher. However our 10-Week 7% Exponential Trading Band still suggests there would be strong resistance to any rally next week near or just above 9500. We will continue to hold current positions.

www.jerryfavors.com


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