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To: Eddie Kim who wrote (16468)	6/1/1998 12:26:00 AM
From: blankmind	Read Replies (1) \| Respond to of 45548

[Cadbury Fax Service (212) 249-1131] All traders established short positions on Friday's opening and are profiting by 11 S&P 500 points. The stock market reversed directions on Friday and closed lower on the day. The Dow declined 70 points to end at 8890, the S&P 500 fell 6.8 points to 1090.8, and the NASDAQ Composite dropped 16 points to 1779. Five signs of a bear market are evident. 1) The Dow, the S&P 500, or the Dow and the S&P 500 have moved up in the morning but closed down on the day in 13 of the past 26 sessions. Daily reversals in half of 26 sessions are extremely rare. 2) The net inflow of capital into the equity funds has dried up in the last 2 weeks, according the AMG Data Services. AMG has reported a net outflow of $339M for the 2 weeks through last Wednesday. 3) Mutual fund cash levels have continued to weaken. In Apr, cash levels were 4.3% of assets according to IBD, 4.2% according to Barron's, and 3.7% according to Ned Davis Research, the first reading under 4% since computations began in 1966. By contrast, cash levels were about 10% before the plunge in 1987 and 11% before the 1990 bear market. 4) Declines in volume during May were much more than seasonal. 5) You may remember that 2 bull market buy-signals failed on Tuesday. The S&P 500 has been projected to close out the week at the 1082 level or lower; 1078 or less has been forecast for this week's close. The intraday stop for all traders was set at the 1108 level.