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To: Tommaso who wrote (831)	12/20/1997 2:21:00 PM
From: Gale A. Thompson	Respond to of 1267

Hi Tommaso, "What would your take on the situation be if the NASDAQ should go below 1400-1450 on Monday or Tuesday?" I try not to be a messanger of bad news..., but it would be much easier to make the case that the nasdaq will fall to those levels. If you are a patterns person, there is a neckline around 1540. There is a failed triple top around 1640. The difference is 100 points. If you subtract 100 points from 1540, you will get 1440. The pattern would suggest Nasday will go that low. Also, if you take the low of the last run, 1194 on 4/22, and the high, 1748 on 10/13, and apply Gann retracement..., the 1/2 retracement is 1471. Gann states that the 1/2 retracement is the strongest resistance point in the run. Nasdaq has retraced twice to this price so far... Monday/Tuesday may be the third attempt. If we fall below the 1/2 retracement, the 5/8 retracement is around 1400, which would be the next strongest support line. Falling below that, Gann would say we're going to return to our starting point. Given the current state of affairs, the odds are very good that we will attempt a 3rd try at the 1/2 retracement. Just my thoughts... -- Gt --