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To: Les H who wrote (312)	6/12/2001 12:23:37 AM
From: Les H	Read Replies (1) \| Respond to of 29597

WHAT TO EXPECT NOW June 11, 2001 The S&P "5 day ARMS" closed today at 6.88, which is bullish. We also watch the "10 day ARMS" which keeps track of the bigger trend. When the "10 day ARMS" is near 120 the bigger trend is still up. Today the "10 day ARMS" closed at 130. The "Percent Volume" indicator closed today at .404. This reading is neutral. The pattern forming here appears to be a bearish "Three Drives to a Top" and a lot of the time the third top is a double top. The VIX hit a low last week at 21.11, which is bearish. Since there are contractions in the S&P's, we are staying flat. No new trades on the S&P's. The NDX had a bearish "Upthrust" that started on May 21 and was completed on May 23. The minimum downside on the "Upthrust" pattern is the previous lows of the trading range, which is near the 1750 area on the NDX. On May 29, a bearish "Specialist Trap" was triggered. This bearish pattern has a target of "Four times the length of the breakout day" which projects down to near the April 4 low of 1400. The "5 day ARMS" on the Nasdaq last Thursday came in at 2.99. At the last high on May 23, the "5 day ARMS" closed at 3.26. For this move down, we are at least expecting to test the previous low set on May 30 near the 1770 level. That equates to the 44 level on the QQQ. If the 1770 level is broken on higher volume than the previous low of May 30 (the May 30 low had 1.54 billion shares), than that would imply the market should head down to the next support level, which is the April 4 low. We are short the QQQ at 46.80 per our 9:45 Eastern update today. Our stop is at 51.10. We are long the XAU. A bull market has begun on the monthly charts in Gold that has an upside target (according to Advance GET) of near 330. For short term a consolidation pattern is going on that may last into late August. We are not saying that a consolidation will last into August, but rather one could last into August. There is another take, which the consolidation will end in late June. Either way, much higher prices are anticipated for the longer term. A lot of the gold stocks (Homestake, ASA, Newmont Mining etc) have broke above previous highs on higher volume. This is the type of action that appears in bull markets. However, for short term, patients are required during consolidation. marketweb.com