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Strategies & Market Trends : Trend Setters and Range Riders -- Ignore unavailable to you. Want to Upgrade?

To: Susan G who wrote (20693)	7/15/2002 4:28:45 PM
From: backman	Read Replies (1) \| Respond to of 26752

from thestreet Aaron Task fibonacci follies 7/15/02 03:44 PM ET For wave-pattern devotes: A reader reports (and Steve Hochberg of Elliot Wave Financial Forecasts confirms) that the cash-S&P bounced today from a level representing a 50% retracement of the gains from the 1987 crash low to the high in 2000 and a nearly 62% retracement of the gains from the 1994 lows to the March 2000 highs. Hochberg suggested today's sell-off is "conducive for a low" because if averages can rally for the rest of the week, a lot of selling climaxes will have been established (where stocks make a 52-week low but close higher for the week.) He suggested today could be the end of the third wave down (of five waves) since the March 19 highs. The fourth wave should bring a rally of 4-8 weeks and upwards of 10% for major averages but will be followed by a fifth wave down that will take averages to new lows. From that point, Hochberg suggested, stock might mount a serious bear market rally -- of 30% to 50% -- but not tbefore.