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To: MonsieurGonzo who wrote (51358)	9/2/1998 6:48:00 AM
From: donald sew	Read Replies (4) \| Respond to of 58727

Steve, >>>>>> I don't get the usefulness of this T/A indicator (in this environment) at all, Donald. I mean, there are onlt four functioning sectors in the market (if that: BigTechs, Drugz, Retail, Financials). Most of the technicians use the NewHigh/NewLow measurement as something to gauge a continuation pattern or, as a measure of divergence between market sectors. <<<<<<<<<<<< I only started watching the NEW HIGH/NEW LOW since the spring, and what I noticed is that it can be a good leading indicator at times. I was actually watching the 2,5,10,20 day moving averages on my spreadsheet before I lost all my data. I noticed that it peaked and started heading down in early MAR, which was a precursor to the pullback in April. Right, now I am using the NEW HIGH/NEW LOWs to see if there is confirmation of yesterdays big reversal, on a short-term basis. Granted that the NEW HIGHs may not improve alot since the market is so far from the highs, but the NEW LOWS should improve immediately and alot in light of the big rebound yesterday. To further explain, on MON the NEW LOWS got to the 1200 range and yesterday, in light of a 430 point rebound off the lows, the NEW LOWS only improved to 930. If I recall correctly the NEW LOWS, after the OCT dump, improved immediately(1-2 days) from over 300 to 50 range. One could argue that the NEW HIGH improved the same amount from 1200 to 900, but I prefer not to use absolute numbers but watch the rate of change based on percentages. With the NEW LOWS still at 930 yesterday, I am concluding that there was still alot of selling in the smaller/mid-size issues, in light of the 430 point rebound. Sure it could be a delayed reaction, but until it improves dramatically and quickly, it just will not confirm a huge rebound from here, and actually be a negative for the market. Using the NEW HIGH/NEW LOW is not a science but requires some subjectivity. Seeya