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To: Teresa Lo who wrote (6199)	3/17/2001 3:42:52 PM
From: Susan G	Respond to of 8925

Thank you Teresa! For taking the time and the excellent explanation. It is the weekend, I appreciate it. Susan

To: Teresa Lo who wrote (6199)	3/17/2001 10:15:10 PM
From: theniteowl	Read Replies (2) \| Respond to of 8925

Regarding the flag formation that has developed over the past week and the measuring formulas...there are a few sites that have some additional info, also this from E&M "Technical Analysis of Stock Trends"... "Flag and Pennant Consolidations are characteristic of fast moves. Therefore, they show up most frequently in the latter dynamic phases of Bull Markets, after the first accumulation and more orderly early markup markup stages have passed. Hence the appearance of these patterns may be taken as a warning that an advance is approaching its final weeks. The rapid phase of a Major Bear Trend, on the other hand, is its second stage, often characterized by almost "vertical' Panic Declines. The flags and patterns that develop therein are usually short-completed in a matter of three or four days rather than weeks. In the late months of a Bear Market, formations which evolve on the charts in the Flag or Pennant similitude often will run too long (four weeks or more), begin to shown an increase in volume on the rallies, and be succeeded by only dull and limited reaction. In general, it may be said that these particular chart patterns are most common (and most dependable) in uptrends. The appearance after a Major Decline, of price pictures which, at the start assume the downtrend flag or pennant form must be regarded with caution. Unless such developments hold strictly to the limitations we have stated above under the heading of 'reliabilty,' do not trade them." pg. 213-215 "The same approximate measuring formula applies to the Pennant as to the Flag. They are both 'Half-Mast' Patterns which ordinarily form after a fairly steady and rapid (steep) price movement." pg. 212 On the measuring formula they suggest going back to the previous consolidation or reversal formation, trendline or support/resistance level and then measure from there to the minor reversal point at which the flag or pennant began to form. Also mentioned is the fact that in an uptrend they generally go further than the measuring formula and in a downtrend may not go quite as far. "Hence, the formula is best applied on a semilogarithmic chart by measuring actual chart distance rather than by counting points." Other links below, and the measuring formulas are slightly different, so targets range from the mid 1700's to the mid to low 1600's depending on the start price. I think starting the measurement from the prior flag formation concluding on 3/8 would be valid and yield a conservative estimate of about 1750; however just 'looking' at the semilog chart the low 1600's seems possible. acot.com.au baresearch.com stockcharts.com Another movement to keep in mind would be the measured bear move that stockcharts has outlined, using the March 2000 high and assuming <gg> this is the third leg down the target would be in the mid 1700's, using % not price. stockcharts.com Just some additional thoughts for discussion, appreciate your posts.