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To: Gary Korn who wrote (3389)	8/11/1999 1:56:00 AM
From: Herschel Rubin	Respond to of 10027

Interesting reading about S&P due for a bounce from Standard & Poor's Investment Advisory Services LLC after the close today. The most interesting part: "In Tuesday's market, the RSI on the S&P 500 finished below 30.01. This is a rare occurrence. In the past ten years, there have only been 28 occasions when the 14-day RSI has been below 30.01. " (This is a repost courtesy of ibnjoyn). ___________________________________________________________ messages.yahoo.com by: ibnjoyn (44/M/Maple Valley, WA) 69649 of 69650 MARKETS : MARKET SNAPSHOT Tuesday August 10, 1999 (4:41 pm ET) Odds Favor Net Gains Over Next 3 Days By Paul Cherney, S&P Market Analyst NEW YORK, Aug. 10 (Standard & Poor's) - I run a 14-day RSI (Relative Strength Index) on several charts, but I do not use this oscillator in the traditional manner (i.e., looking for divergences between price and oscillator, because I have found that to be a waste of time -- it gives me too many false signals). I use a 14-day RSI for only to alert me to extremely overbought and oversold conditions in the markets. For the S&P 500, I consider an oversold level to be anything under 30.01 and overbought to be anything over 77.99 (the oscillator ranges between 0 and 100). In Tuesday's market, the RSI on the S&P 500 finished below 30.01. This is a rare occurrence. In the past ten years, there have only been 28 occasions when the 14-day RSI has been below 30.01. When the market has suffered through such relentless selling, the RSI can register several days below 30.01, so I combed through the data and signal dates for the first date of a reading below 30.01 that was preceded by at least three months of no readings below 30.01. I think this market put in a short-term bottom and we should see a tradable bounce of anywhere from 1.6% to 3.0%. The NASDAQ has a broad band of strong support in the 2480-2385. Tuesday's low print was 2442.22. The S&P 500 has short-term support at 1285-1275, then 1275-1269. The index has stacked levels of support, with a broad, strong area of support in the 1275-1220 area. Tuesday's total NYSE volume was a healthy 837 million shares, and the CBOE Total Put/Call ratio hit capitulation levels. - these are additional factors that point to some sort of a rebound. 10-Aug-1999 16:41:13 (02173888) Copyright 1999 Standard & Poor's Investment Advisory Services LLC. The information contained in this report may not be published, broadcast, rewritten or otherwise distributed without prior written consent from Standard & Poor's.