Stock Market Highlight #25
Market peak projected through use of trading strategies presented
in "The $upertrader's Reference Manual".
(COMMENT #s 733, 735)
UPDATED 19981005
COMMENT 1998-733
1. The chart shows 15 minute bars for DJIA (Dow Jones Industrial Average) prices through
Monday's close and continues the COMMENTS of yesterday.
2. The interpretation ALIGNS with the "Linear Cycle" projection on page 295 of
"The 1998-99 $upertrader's Book of Linear Time Cycles" we've repeatedly
referenced over the last several weeks in these COMMENTS.
3. It suggests that we should experience a market peak tomorrow around 12:00 Eastern time.
4. The "cross" in the chart near the "C of 4" marks both a reasonable
time and price projection of when the current (short term, contra-trend) rally should end.
5. The next logical expectation should be a further decline below the lows of both Friday
and Monday.
6. Note that the "B of 4 Wave" (today's low) was HIGHER in the DJIA than
Friday's low while the December S&P 500 futures contract traded lower, thereby forming
an important short term, intraday DIVERGENCE (see pages 171-184 of "The $upertrader's
Reference Manual).
7. The lower horizontal line in the middle of the chart marks the 50 percent price
retracement of the distance from the "2" to the "3" point.
8. The upper horizontal line marks the low of the assumed "1 Wave".
9. If the interpretation is correct, this point (roughly 7900 or so) should not be
exceeded to the upside (i.e., price should not trade higher than this point tomorrow).
10. The upper up trendline is that shown earlier today in COMMENT # 726.
11. Note that the two lower up trendlines which form the current corrective up channel are
both drawn parallel to the upper up trendline.
12. The "4" and "3" waves are about equal in time at the
"cross" shown in the chart.
13. The down trendline just above the "4" is the down trendline which has
provided strong resistance to any rally attempt since the July high.
UPDATED 19981006
COMMENT 1998-735
1. The chart which follows updates the 15 minute Dow Jones Industrial Average bar chart
through today's close.
2. The chart also updates COMMENT # 733 of yesterday.
3. The "down arrow" replaces the "cross" in yesterday's chart for
legibility.
4. All else is the same.
5. It was close, but as you can see, the expected peaking did occur after an early morning
rally.
6. The peak was about an hour earlier and just a tad higher than the ideal expectation.
7. The move down from the morning high should be "Wave i of 5".
8. The probability is that we either finished "Wave ii of 5" this afternoon or
will complete it early tomorrow.
9. Think about it - CNBC has resorted to magic tricks and a clownish road show in order to
entertain and passify viewers.
10. Is this a sign of deep and severe crowd discomfort?
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