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To: Robert Graham who wrote (41272)	4/25/1998 12:30:00 PM
From: jjs_ynot	Respond to of 58727

I think there were some who tried to buy the dips. All that did this past week was slow the rate of descent. That was a first for a long time. At a historic high P/E level and E not increasing; upside from 9100-9200 (SPX 1120-1130) is very limited. A technical bounce on Monday looks likely and it would then push the time period for the downturn out till Wednesday IMO. The funds appear to be quietly building their cash positions, now that "earnings season" has about run it's course.

To: Robert Graham who wrote (41272)	4/25/1998 4:29:00 PM
From: donald sew	Read Replies (2) \| Respond to of 58727

INDEX UPDATE ------------------------ Many will feel that the overall market was down on Friday, with all 3 of the major indexes DOW, SPX, NAZ all being down substantially. Here is an interesting observation. Most of the NAZ/HiTECH indexes were slightly up or flat. I contend that on Friday we saw again sector rotation, but into the 1st and 2nd tier NAZ/HiTech stocks. It was the lower tier NAZ stocks which declined. The MSH, IIX, XCI, CWX, NDX, SOX, DDX, were either slightly up or flat (NDX was slightly down). In light of this and other technical factors, there is a chance that Monday may be up, at least intraday, but not much. Was this a last ditch effort of sector rotation implying weakness, or is it a sign of strength. I believe it was both in the sense that this pullback will continue till about mid-week, but that it will quickly rebound back up. I rechecked the support lines on the DOW and the next 2 supports are at 8900 and then a major one at 8750. I am still holding to my position that the earliest rebound would be after Tuesday's low, with higher probability of WED/THUR. When either the DOW, SPX, NAZ gets to CLASS 1 BUY status per my system, I will be going long the market. Keep in mind that the market may not get that low on the technicals before turning, at which time it will become more of a guess. Seeya