IOM SEPTEMBER S&P 500 INDEX: Minor trend up, major trend up.

Moving Average-Positive-5-day 899.63, 20-day 892.79; positive-4-day 900.97, 9-day 898.44, 18-day 896.10; 50-day 858.16.

Oscillators-RSI 66%, stochastic 67/52, MACD 12.81/14.04.

Technical Indicators-Short-term market momentum has now turned neutral, from down, on yesterday's rally. Previously declining daily oscillators are now turning higher once again.

Viewpoint-The market closed well above important minor resistance at the 903.50-905.00 level. This suggests that the recent downside correction is over, and the major uptrend has resumed. It is significant that important longer-term support at the 875.00 area was loosely tested and held last week just prior to this sharp move to the upside occurring. This indicates that bullish longer-term market momentum is still valid, and that the major uptrend is still "healthy."

CBOT SEPTEMBER TREASURY BONDS: Minor trend down, major trend up.

Moving Averages-Positive-5-day 111.17, 20-day 111.17; positive/changing-4-day 111.19, 9-day 111.25, 18-day 111.20; 50-day 112.06.

Oscillators-RSI 60%, stochastic 49/34, MACD 0.50/0.61.

Resistance-112.21-112.24 * key daily resistance. Support-110.23-110.26 *** key daily support.

Technical Indicators-Bearish short-term market momentum is now in question due to yesterday's move higher. Expanding open interest on higher prices Tuesday (bullish). Daily oscillators appear to be turning upward once again.

Viewpoint-The market rallied through and closed above important minor resistance at the 111.27 area yesterday. This suggests that the downside correction is over, and that the major uptrend on the daily chart is resuming. A rally above 112.09 today would help to confirm this. The market's test and sharp move higher from important longer-term weekly support at the 110.26 area earlier this week is a bullish technical signal for the weeks to come.

July 3, 1997John J. Kosar

Greenwich Natwest Futures, Inc.

311 S. Wacker, Chicago, Illinois

Consensus National Futures and Financial On Line Index
Technical Corner Index

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