G
12/31/98 Merrill Lynch (MER) Points to watch: MER has corrected 15% from its November snap back rally highs. The stock's last two up swings have been stopped by Gann angle resistance (at 79.75 and 73.25). Daily RSI and OBV have both turned down. During its rebound from the October lows MER touched, but was unable to break above, its 200 day moving average. The failure of MER to break above its 200 day moving average, and its subsequent correction, have negative implications for the current market rally. Merrill tends to be a leading indicator for future market trends. The stock's recent correction is a warning sign that the market's rally is nearing its conclusion. Continue to watch the large brokerage stocks (excluding Charles sch which is fast becoming a proxy for the internet bubble) over the next few weeks for clues to the market's future direction. |
