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To: George Mc Geary who wrote (34342)	1/28/1998 12:53:00 PM
From: Darth Trader	Read Replies (1) \| Respond to of 58727

The past two weeks the divergence of DOW/NAZ has always caused the higher to come down. There should be some profit taking in the tech blue chips soon. Has the street forgotten about IRAQ and Tailgate?

To: George Mc Geary who wrote (34342)	1/28/1998 1:05:00 PM
From: donald sew	Read Replies (1) \| Respond to of 58727

George, Firstly, I have to apologise, and that the figure for the NDX should have been 1060 not 1050, since my calculation was supposed to be 25 points higher than yesterday's close. The figure on the NAZ is correct, and the 1060 limit on the NDX is more in line with the 1610 limit on the NAZ. Now everyone knows that I cant add. ggggggggggggggggggggggggg Yes, the NAZ and NDX is now in the overbought range, and the NDX should be a CLASS SELL to obtain at the high tomorrow, keeping in mind that tomorrow, intraday, can still be up. Some of the non hi-tech sectors still have upside room, but they are also getting in the overbought CLASS SELL range, the most obvious being the DRG. If the limits I mentioned are broken to the upside, we will be looking at a technical breakout and then my technicals are of no use. I do not think that will happen since the DOW is showing weakness. The DOW is back up 44, and it could go up 75-100 and close there. That would not reduce my position of overbought-ness and reversal soon, but only intensify it. Please keep in mind, that although I do use targets, my system is more based on time than it is price, in fact price is one of the lesser factors since my system is not based on resistance/support lines, but on actual technicals, whether an index or stock was up 1 point or 20 points. George, the only question I have is how much of a pull-back once the reversal starts. In the recent past, we have been averaging 5-6 days for the pullback, except the last one which was only 3 days. My initial feeling that any pullback will be small, say maybe 150-250 points on the DOW. Thats a big improvement compared to last big one, a few weeks ago, of 600 points. Seeya