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To: rebecca who wrote (4697)	10/28/1997 10:37:00 PM
From: HeyRainier	Respond to of 9262

[ DUSA ] Hi Rebecca, Looks like all stocks were swinging wildly, not just the biotechs. DUSA's chart looks interesting from a candlestick standpoint: The first major sellof made it look like an Evening Star-like pattern had developed(the movement did not correspond exactly to it, but the resemblance is strong enough to make a reference to it; please see below for explanations of mentioned patterns). In addition, the extent of the sell-off was so strong that had it developed the day after the major run-up, the sell-off would have resembled what's called a Dark Cloud Cover, a major reversal pattern(that's a given under the conditions of the two patterns) In addition, the gap down that virtually all stocks experienced today was not followed up with a rally for DUSA--that makes this stock one that falls under my "weak" category. The only bright side is that with today's action, 2 out of the 3 candles necessary for a Morning Star have been completed. You need to wait for confirmation to see if indeed the weakness will be countered with a confirmed reversal. I think you might get that tomorrow, depending on the tone of the intraday activity before the close(I haven't seen it yet.) I don't recall ever having seen a stock just go straight up and then straight down. Too many emotional strings have been tied to the stock, which will make any oversold condition be met with a reflexive jolt to buy(under the assumption that the stock is a better deal). The bottom line is that it will be choppy; I don't expect this to shoot straight back up either. If no fundamental stories develop in the mean time, I would probably expect this to jostle up and down, with a downward bias until a firmer base is established by some consoldiation. But to answer your question, Yes, I do see some technical damage, but I am not an expert in determining near term reactions as a result of world-wide market selloffs and rallies. I think you'll be able to see some sign of an advance short term if you're planning to sell. Regards, Rainier Dark Cloud Cover: scifi.co.uk Morning Star: scifi.co.uk Evening Star: scifi.co.uk