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To: Les H who wrote (187)	5/21/2001 6:01:02 PM
From: ajtj99	Read Replies (1) \| Respond to of 29601

Les, Nancy posted an interesting chart observation on Steve's Channelling Thread over the weekend. She said that when the VXN drops 20% below the 20-day exponential moving average, the Nasdaq tops about 7-trading sessions later. This happened on January 23 and August 23. It may be pure coincidence, but it is a pretty eerie way to foreshadow the near-term top. She said the VXN dropped 20% on Friday's close from the 20-day EMA. I don't know if this works for the VIX also, but it seems we may see a near-term top in the COMP by May 31st if this indicator works again. I don't know how that syncs with the cycles, but it is a pretty good indicator to look at. I think your comment about sector rotation seems to explain what we've seen today. I think the money is chasing the momentum near term. We'll see if it keeps up. I still say the SPX stalls at 1324 max and heads south.