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To: SE who wrote (46752)	6/24/1998 7:54:00 AM
From: donald sew	Read Replies (1) \| Respond to of 58727

INDEX UPDATE -------------------- Per the SHORT-TERM technicals the overall market is a CLASS 1 SELL to initiate positions at the high of the day. I do need to express some concern in light of the strength in the NAZ over the last few days. Firstly the NAZ has set a substantially higher high and the NDX is only a few points away from setting a new high. These are signals that we could be heading up and the correction is over, but such also needs confirmation. Per my previous posts I projected the possibility of the DOW reaching 8400-8450 by next week. I am still holding that position but am on the verge of changing it depending on the next few days performance. If the NAZ continues up strongly today, not just flat - has to to be up and close strongly then I will conclude that this correction may have seen its bottom. Another concern I have is that the market internals are improving. I will be watchning those very carefully today to see if yesterday was just a blurp to upside or the actual beginning of the summer rally. Yesterday I initiated a put spread in light of these uncertantees, rather than playing a straight put. With a put spread I minimized my cost, and put a limit on potential gain. My position is $3.375 risk to potentially make $10.00 if the OEX closes at or below 535 by JULY expiration. Also my position will be around break even if the OEX is in 541 5/8 - 544 range, but that depends on the time value. Seeya