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

Moving Averages–Negative–5-day 923.95, 20-day 940.78; negative/changing–4-day 930.23, 9-day 927.08, 18-day 940.39; 50-day 925.09.

Oscillators–RSI 46%, stochastic 76/59, MACD 0.18/3.18.

Resistance–944.90-945.10 ** key daily resistance. Support–893.15-893.35 ** key daily support.

Technical Indicators–Pivotal area where the next significant price move may begin. Rising daily oscillators warn of an intraweek move higher.

Viewpoint–The market continues to trade on both sides of major support at its 50-day moving average (at 925.05 today). Because of this, the major daily trend of the market remains neutral, as does our short-term outlook. The next large directional price move is very likely to begin from this pivotal price level. The market is in an ideal technical environment for the recent major uptrend to resume if still valid. If it fails here, it would be a big technical warning signal.

CBOT SEPTEMBER TREASURY BONDS: Minor trend neutral, major trend neutral.

Moving Averages–Negative–5-day 113.26, 20-day 114.10; negative/changing–4-day 113.27, 9-day 113.13, 18-day 114.06; 50-day 113.18.

Oscillators–RSI 40%, stochastic 73/78, MACD —0.07/0.06.

Resistance–114.11-114.14 ** key daily resistance. Support–111.31-112.02 *** key daily support.

Technical Indicators–Pivotal area where the next significant price move may begin. Short-term market momentum remains neutral. Previously rising daily oscillators now may be turning lower (intraweek bearish?)...

Viewpoint–The market has been in an ideal technical environment for the recent major uptrend on the daily chart to resume over the last 5 days, but so far has been unable to move significantly higher. This is a bearish warning signal. Our short-term outlook remains neutral until it becomes clear that the market has begun a new directional move from this important, pivotal price area. The market is now testing the tops of bullish triangle patterns on the weekly and monthly charts.

August 22, 1997John J. Kosar

Greenwich Natwest Futures, Inc.

311 S. Wacker, Chicago, Illinois

Consensus National Futures and Financial On Line Index
Technical Corner Index

Added to the WWW 08-22-97
Last updated on 08-22-97

Hosted by:
One Crossroads Place
610 West Maple Ave, Suite WWW
Independence, MO 64050
(816) 252-4080
sysop@kcmo.com

wmeubank@ocp.kcmo.com