Replies to post #1082 on Ander's Market Theories (AMKTH)

[AnderL]

Getting close to a decision making point. Hold for further upside or expect a revist to lower lows.

If you notice the technicals on both these funds the rising\falling support\resistance (depending on what chart you look) of RSI5 is already testing the current trend line as is price. On the UOPIX its resistance, on the USPIX it is support. Stoch is trending upwards on the bear fund and the tops are going lower on the bull fund. The only noticeable technical with Stoch is that it is gravitating to one extreme with each oscillation. Stoch can sit in an overbought oversold position for quite a while identifying a distinctive trend. Without a break of this pattern in Stoch the speculation is that the NDX should continue to the down side. Yet MACD still have more room to continue the current swing so next week may see slightly higher prices in a tighter range creating an intermediate top.

With the bullish divergence on the Dow and NYSE the next 2 weeks may see a reversal of the downtrend and those markets will turn to follow technology stocks back to the upside. If technology does not maintain gains and begin dropping off then there is no further hope for continuation and the reversal on the Dow and NYSE sould be cut short.