This is the RBI-Trial delayed edition. This publication was software delayed by 24 hours. You can subscribe to the real time version of RBI at http://lowrisk.com/rbi-subscribe.htm or call us 888-854-6516 (toll free) or 303-980-1168. We now have secure ordering from our Lowrisk.com web site! This is a complete "end to end" secure system using SSL and PGP encryption. To order go to http://www.lowrisk.com/rbi-subscribe.htm and select "Secure web form". To unsubscribe from this delayed edition send mailto:[EMAIL PROTECTED] with the word "unsubscribe" in the body of the message. ................................................. R.B.I. W e e k l y 10 / 10 / 99 ................................................. The bulls finally had a nice week. On Monday the market had a good breakout rally in front of the Fed meeting, getting the week off to a good start. On Tuesday, after the fed announcement, the market took a spill to near the Monday lows and came back nicely. Then we saw more follow through buying on Wednesday and, after a brief pullback Thursday, the bulls kept plugging away with another breakout rally on Friday. Most of the averages closed at or near their highs for the week. The week's gains were impressive, to say the least, as the Dow and SP500 cash were up 376.76 and 53.21 points, respectively, by week's end. That was good enough for gains of 3.67% and 4.15%. The Nasdaq 100 rallied just enough to close in record ground, while the Nasdaq Composite is about a point away from doing the same. On Thursday night we wrote: "The highs today [Thursday] were made at an important resistance/target level, and a breakout above those highs should bring in the money and run the Dow up to a huge resistance level between 10710-10750. For reference, today's highs were: Dow, SP500 cash, Dec SP futures 10604.49, 1328.03, 1339.30" That breakout now has the averages quickly nearing the last big resistance levels from the mid August to late September decline, and we think that what happens early in the week near these levels is going to be very important for the bigger picture. Aside from a possible Nasdaq breakout here, we have more breakout points just above the market on the Dow and SP500 cash index. The SP500 cash chart is bumping up against the upper trendline of a falling wedge on its daily chart. A close above 1341 SP500 cash here and this chart will look pretty bullish for the bigger picture. On the Dow daily chart, that average is bumping up against the bottom of a former rising parallel channel. A close above 10710 would be a bullish indication. We also have some big resistance numbers intraday to tackle that are just above current prices. There is very big resistance between 10723-10737 on the Dow and between 1354.50-1356.00 on the December SP futures (see the resistance numbers below). These Dow numbers include two retracement levels, along with a prior short term low made in this area at 10732. It's just about the same on the SP futures, with a cluster of two resistance numbers and a prior high made at 1354.50. These levels look to be very important - a large area of supply - that must be overcome to make the charts look really good. We had some subtle bearish internal divergences on Friday. For a powerhouse day, breadth was negative by 104 net issues and volume was not what we'd like to see on breakout moves. But the market has been acting very well lately, and if the bears are going to get control back, the market needs to start selling off early in the week. So we want to be watching the big resistance levels that are just a short way above the Friday close. If the market stalls out in that area, a reversal and decent selloff will likely be in the cards. If it doesn't stall, and instead breaks these levels, an acceleration of the uptrend looks likely. Again, selling near that zone with a stop and replace just above might be the way to trade this setup. We are going to hold off on an "official" trade and let the market do the talking should we get near those resistance levels. If the market is going to get up there and keep on going, this would have to be a meltup type of rally. So we are going to be watching for a few things that we will tell us whether on not this is a meltup rally. For one, keep an eye on the tick during a rally...on any pullbacks in price the tick should hold above the -300 level. Also check out the breadth, as the advancing issues should outnumber the declining issues by better than 500 issues. Finally, keep an eye on the trin, as a breakout likely won't occur unless the trin is .75 or lower. These are all indicators that will tell us how aggressive we want to be in shorting at that resistance level. ------------ Editor's Note 11:45pm eastern, 10/11/99 -------------- Sorry for the delay in getting this trial issue out. The delayed publication is normally completey automated, but tonight's issue took a little manual intervention. Two nice tops in our resistance zone gave some good spots to sell...if you got the real time version. Subscribe today at: <http://www.lowrisk.com/rbi-subscribe.htm> ------------------------------------------------------------------- // -- NUMBERS -- // RBI signal strength = <1.28, neutral> RBI buy/sell gate = <closed> - - - - - - - - - - - - - - - - - - - 3 Day Thrust = <.09, neutral> ADO 18 = <-216, neutral> McClellan Oscillator = <+41, neutral> Open10(Trin) = <.88, neutral> BandAid = <1.23, neutral> Momentum13 = <1.95, neutral> Vol10 = <1.13, neutral> - - - - - - - - - - - - - - - - - - - Resistance basis the DJIA 10723-10737***** 10875-10892 11062 11142 A low below 10081 changes resistance Resistance basis the SP December futures 1350.40-1352.60 1354.50-1356.00***** 1370.10 1377.00 1403.00 A low below 1267.00 changes resistance - - - - - - - - - - - - - - - - - - - Support basis the DJIA 10520 10436 10368 10301 10217 A high above 10656 changes support Support basis the SP December futures 1328.90 1317.10 1307.50 1298.00 1286.10 A high above 1348.00 changes support Good trading, Jeff Copyright (c) 1999 by Jeff Walker, Lakewood, CO The R.B.I. Trader's Weekly and Updates may not be redistributed without permission. Disclaimer The financial markets are risky. Investing is risky. Past performance does not guarantee future performance. The foregoing has been prepared solely for informational purposes and is not a solicitation, or an offer to buy or sell any security. Opinions are based on historical research and data believed reliable, but there is no guarantee that future results will be profitable. We are not advocating trading futures. The prices and contracts in our R.B.I. signals and R.B.I. Weekly Market Letter specify a manner in which you could trade RBI. We occasionally use the SP futures market because it is extremely liquid and tends to lead the other markets. This is not an endorsement or recommendation of the SP futures market. The risk of loss in futures is substantial. 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