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To: TREND1 who wrote (31996)	12/27/1997 11:57:00 AM
From: j g cordes	Respond to of 58727

Hi Larry, looked at your MU chart. The 96 June lows could be revisited, however on a weekly chart the stochastics are very low, momentum has bottomed, RSI looks flat.. I'd guess it'll be range bound between 21 3/4 and 27- through the end of January with a spring weakening below the range. Jim

To: TREND1 who wrote (31996)	12/27/1997 6:17:00 PM
From: donald sew	Read Replies (1) \| Respond to of 58727

Larry, Concerning specificly the SOX, and most of the other HiTech indexes, all the technicals have indicated that it has bottomed. Of course if the overall market tanks dramatically now then the SOX will also break. I will not explain all of the signals indicating that the SOX has bottomed in the 240 range, but I would like to mention just one which many are familiar with. Take a look at a simple line chart of the SOX, it indicates that the "HEAD AND SHOULDER" formation is over/bottomed:: LEFT SHOULDER - MAY/JUNE HEAD - AUGUST TO MID OCT RIGHT SHOULDER - NOV The RIGHT SHOULDER was in the 290 range approximately and the lowest the SOX has gotten recently was in the 240 range. That is approximately 15% below the RIGHT SHOULDER. Many technical analyst may agree that this HEAD & SHOULDER formation is complete and has reached its bottom. Also note that the SOX has basicly retraced all the way back to the 52 week low which was at the end of December last year, so in other words the SOX has made a complete cycle and is not at the same level it was at the beginning of this year. I am not considering fundamentals, so I cannot, with any strong knowledge, comment on the Asian effects on the SOX specifically; however all the technicals indicate that the SOX has bottomed in the 240 range. If one feels that the market has traded ahead of itself and has compensated for all the negativity that the ASIAN FLU will have on the the semi-conductor sector, then this is the time to get in. I use many technical indicators and they all say that the SOX has bottomed. Hope I was of some help