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To: ViperChick Secret Agent 006.9 who wrote (29752)	12/1/1997 1:09:00 PM
From: Tom Trader	Read Replies (1) \| Respond to of 58727

K Rose--let me see if I can answer your question The buy point on the FUTURES is affected by any gap opening--and the larger the gap the greater the impact. The impact of a gap open on the SPX is very difficult to gauge in terms of the co-relation to the futures--function of how the gap gets filled as a result of buy/sell programs kicking in depending on the direction of the gap. I estimated the 3 point gap as not having any effect based on where the futures settled in relation to the cash on Wednesday--eg if the futures had a closed at below fair value it would not have made as much difference if they gapped up, as it would if the futures closed at fair value or a premium. As far as how it impacted the trade on Friday--my buy point on the futures was a little higher than it would have been without a gap open, but where the cash index was at the point when the signal was triggered, I don't know since I was not watching the market on Friday. Don't know if all this makes any sense to you--but hopefully it does. Need to head to the airport in a couple of hours--so I am logging off.