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To: donald sew who wrote (32963)	1/12/1998 10:08:00 PM
From: Dwight E. Karlsen	Read Replies (1) \| Respond to of 58727

S&P futures up marginally. Very early indication which means little. Real action starts about 3 hrs before the US market opens. cme.com

To: donald sew who wrote (32963)	1/13/1998 1:12:00 AM
From: The Jedi	Read Replies (1) \| Respond to of 58727

Donald you have previously indicated that you do not use price to give a class1 buy but use indicators. You said that "Today's performance was a major reversal. Many will only consider it a slight reversal since it was only up 66 points, but technically it was very strong. The DOW reversed 200 points off its bottom which is one of the more powerful reversals in a single day." Because to me the points should not matter in calling the reversal technically strong. I would call a reversal technically strong if an indicator gave me a strong reading. Now Oct 28 was a strong reversal 1. Price wise there the reversal retraced 3/5 of the loss of Oct 27. Here only 1/3 loss was recovered. 2. Technically: the Vix had reached 40 and dropped dramatically the next day (Oct 27/28). Last Friday the Vix did not reach those high readings and the drop has not been dramatic. Also same for put/call premium ratios. 4. There was no double bottom formed then. If a double bottom forms now, I would be worried about a break to the downside. What do you say. I am really confused about your analysis. Do you or do you not use price in calling technically strong market. Kiri