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To: Les H who wrote (710)	9/24/2001 7:29:11 PM
From: Les H	Read Replies (2) \| Respond to of 29596

What to expect now. September 24, 2001. Ord. The S&P may have had a "Selling Climax" at Friday's low for the short term. The Volume was huge, closing at 2.5 billion shares and the market rallied off the gap down opening. Today the S&P gapped up strongly and held its gain. Gapping up from a low price area is bullish. The downtick readings have been running to extremes reaching over 1100 for three days going into Friday. Friday's candlestick pattern can be called a bullish "Counterattack Line" and did coincide with a bullish 1250 downtick reading. Today's gap up reinforces the bullish signal. There could be some backing and filling for the next couple days but the S&P should head up and at least test the gap area that formed at the terrorist attack at the 1066 level. We would like to see that gap closed and close above the March 22 low near the 1080 level. This condition would signal the end of the bear market that has been going on since the March 2000 high. However, judging from the "5 day ARMS" at 4.18, we doubt that will happen. We will get to that later, first we will see how high this rally will take us. We had a buy in on the SPY at 99.25 today at our 1:30 Eastern update. This was not hit today and therefore cancelled. We will look to be buying the Spy on the pull back in the next day or so. A likely place for a pull back to end is near today's low of 99 on the SPY. If that does not hold than down to fill the gap at the 97 area. The pull back should not take out the previous low of 93.80. We are long the SPX for mutual fund purposes on today's close of 1003.45. Our upside target is near the 1066 level. The NDX is going into similar patterns at the S&P. A rally up is expected that may test the Gap area formed on September 17 near the 1320 level. Intraday, the NDX and the S&P appear to be drawing "Head and Shoulder Bottoms" where the "Head" formed on Friday. Both markets are working on the left shoulder now. A pull back to complete the "Left Shoulder" may appear tomorrow. The pull back could pull the QQQ back to 29 to 28.50 areas. If the pull back materializes, we may buy the QQQ October 30 calls and possible go long the QQQ. Upside target is the 33 area. Some of the Gold stocks traded above previous highs on higher volume and is a bullish sign. Our favorites are Drooy, NEM, AEM and HM. The Month chart on Gold remains bullish and we are holding long the XAU. A Strong push up on the gold stock may appear in October. Our upside target on the XAU is still 95. marketweb.com