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To: Lizzie Tudor who wrote (67423)	7/13/1999 12:47:00 PM
From: John Donahoe	Read Replies (1) \| Respond to of 164684

RE: Can someone tell me what is a head and shoulders direction-wise? I thought it meant the stock was about to fall... you seem to imply yhoo might be going up a little, thanks A Head and Shoulders pattern can signal a reversal of the primary trend. The primary trend in yhoo has been up. This is for long term trends. Not short term! A H&S top is a pattern that looks like a head with a left and right shoulder. It is necessary for the volume to be correct however. The left shoulder must be completed on higher volume than the head. The Head in turn must be completed on higher volume then the right shoulder. Volume must be relatively the lowest on the right shoulder. A H&S bottom is the same pattern as the above except it's upside down (i.e. standing on it's head). The neckline is drawn across the two dips between the shoulders and the head. A key tenant is that a H&S pattern is not confirmed until the neckline is broken on significantly higher volume. If it breaks, it normally pulls back to the neckline on lower volume. Which is then generally considered a good entry point.