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To: Paul Shread who wrote (28902)	9/1/2000 11:57:23 AM
From: donald sew	Respond to of 42787

Paul, >>>>> If you throw out the wedge breaches on the SPX and redraw the lines to include the new peaks and valleys, we still have a rising wedge. If you do the same on the OEX and the Dow, you have parallel trendlines. My question: would you retain the old wedge lines on those three indexes, or redraw the lines to encompass the breaches? <<<< It is common that once a chart pattern/trendline is breached then the resulting move should be strong and quick. However if the breach lacks follow-thru, then I would say that one could redraw the trendlines to show the change in slope. Take a look at the DOW from the MAR LOWs. You will notice that the trendline form the MAR LOWs was breached about 4 times but lacked the follow-thru to the downside, whereby a the inclining trendline was redrawn.