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Steve Zito is a stock market technical analyst who also uses economic and technical analysis to forecast direction of the stock market. The views stated herein are his opinions only, and should not be relied upon as advice for investment decision-making. If you have a specific question use the Feedback form.
Nasdaq April 11 Page --- INDEX --- --- Good Stocks

INDUSTRIALS INDICATORS
SUPPORT/RESISTANCE

Three of seven signals are negative
Mon. April 10, 2000

The Dow Jones Average
CHART INDICATORS

5-minute chart
Negative trend
resistance 11,203

15-minute chart
Negative trend
resistance 11,200

30-minute chart
Negative trend
resistance 11,186

60-minute chart
Neutral trend
support at 11,170

Daily chart
Neutral
major support 10,908

Weekly chart
Neutral
major support 10,814

Monthly chart
Positive
major support 10,195

Today's Update

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******************Commentary*******************
The Dow ran up to 11,280 by 11 AM, and I added DOW DJX May 106 puts to the Model Portfolio in Today's Update. The Dow drifted down for the rest of the day to 11,186, in sympathy with the afternoon Nasdaq free-fall.
The 5-minute chart resistance moved up to 11,203 from the previous 11,106. The Dow closed below that level, and a sell signal was generated.
The 15-minute chart resistance showed a similar pattern, moving up to Dow 11,200, retaining a sell signal when the Dow closed below that level.
The 30-minute chart resistance moved up to 11,186, exactly where the Dow closed. This indicator remains a sell, since the MACD, RSI and stochastics are negative.
The 60-minute chart support moved up to 11,170 and with the Dow closing above that level, the indicator goes to neutral, but not positive, since the MACD, RSI and stochastics are all negative.
The Daily chart support moved to 10,908 and remains neutral with the Dow well above that level.
The Weekly Dow chart support is still 10,814, and that is the target to watch.
For all the media hype, in 11 trading days the Dow is under 100 points from its close March 23. This is known as STOCK DISTRIBUTION.
The public buys, while the NYSE sells! In response to volatility, mutual fund gurus are on TV advising investors to "stay the course" while their fund advisors are getting their wealthiest clients out. The MACD, RSI, and stochastics on Daily and Monthly Dow charts hit a 5-year peak at the start of this year, and have been negative since January. The Dow has averaged an excess 24% return for the last five years as mentioned in my April 7 Page. After a Dow surge of 170 points on the open today, DJX May 106 puts were entered at Dow 11,280 for the Model Portfolio. The Dow is setting up nicely for a 1,000 point fall right down to the monthly chart support on the heels of any NASDAQ plunge, as soon as the fund managers end their STOCK DISTRIBUTION. The Fed is raising interest rates, and this is not the kind of monetary policy that causes a rise in stocks. Only a few Good Stocks to watch.