Tabell’s Market Letter – September 09, 1977

Tabell’s Market Letter – September 09, 1977

Tabell's Market Letter - September 09, 1977
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– f I ! I ! —- TABELL'S MARKET LETTER 1 I \ — —-' 909 STA.TE ROA.D, PRINCETON, NEW JERSEY 08540 DIVISION OF MEMBER NEW VORK STOCK EXCHANoe. INC MEMBER AMERICAN STOCK EXCHANGE September 9, 1977 We published In this space last June 24th a discussion of computed trend channels for ..-;the,lJRwI'n'!.,!!-!ia!I!!rgal9.111,e!ltE!.gTwith. .Eh,a !!;lowing..,.thtw!r.endthenll\!\slry– In effect. These two channels, representee by the solid and dotted lines on the chart below, ran — from the September 21, 1976 high of 1014.79 and the December 31, 1976 level of 1004.65. The June 24th date is marked on the chart below and, as can be seen, the two trends had largely con- tained the Dow up to that time. What has happened since Is perhaps worthy of further discussion. MAJOR. INTERMEDIATE &MINOR COMPUTED DONTRENDS – DJIA SfTkBER 1. 1977 – fES 1971 I'f'R 1!fl1 P.f'R 1977 I'fI.T 197 …. 1977 …u. 1m JUG Isn 1977 As the chart shows, the Dow backed off from the upper llmlt of the Intermediate-term channel shortly after the June letter was written. It then moved up again In late July and tested the upper llmlt of the channel once more. From that point, on July 22, It began Its current sllde. That sllde can be dellneated by still a third, minor trend channel shown on the right-hand side of the chart. That channel, In tum, has been decisively penetrated on the upside by the recent rally. At Its recent low, the average was precisely at the bottom of the Intermediate channel – – a t around the -850 level. What'lspartlcularlylnferesting 7' more-over;-IS' tharthe '!lottom -levelsof-the — major and Intermediate downtrend channels have converged, thus suggesting that If the Intermedi- ate ehannel Is to be broken, such a break could occur fairly shortly. We have, therefore, three separate events of Importance having occurred In the last two weeks — the convergence of the major and Intermediate channels, the rebound from the bot- tom of both channels and the concomitant penetration of the minor downtrend channel. Whether this reversal will be confirmed by an ultimate upside break above the top of the Intermediate channel, now around the 905 level, remains to be seen. We would certainly regard such a break as having more-than-passlng significance. Dow-Jones Industrials (1200 p.m.) 858.89 S & P CompOSite (1200 p.m.) 96.59 ANTHONYW. TABELL DELAFIELD, HARVEY, TABELL Cumulative Index (9/8/77) 666.98 AWT/lb No 51alemenl or expreSlon of opinion or any other motter herein contOlned IS, or IS 10 be deemed 10 be, directly or mdnl!clly, on offer or the 501l(llollon of on offer 10 buy or sell ony secunty referred 10 or mentioned The matter IS presented merely for fhe convenience of the subscriber While we believe the sour!;eS of our Informa tlon to be reliable, we In no way represent or guarantee the accuracy thereof nor of the STatements mude herein Any action to be token by the subSCriber shauld be based an hiS awn InVestlgalion and Infarmatlo'l Janney Montgomery Scott, Inc, as a corporation, and Its officers or employees, moy now have, or may later take, poslhons or frades In respect to any secUrities menlloned III tflls or any future Issue, ond such position may be different from any Views now or hereafter expn!ssed III thIS or any other Issue Janney Montgomery Scott, Inc, which IS registered With the SEC as an Investment adVisor, may give adVice to Its Investment adVISOry and othe, customers Independently of any statements made In thiS or III any other Issue Further IIlfOrmalion on any security mentioned herein IS ovollable on request

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