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To: Eddie Kim who wrote (51739)	9/7/1998 9:38:00 PM
From: donald sew	Read Replies (2) \| Respond to of 58727

Eddie, Of all the correction over 15%, there has not been a rapid rebound. I have included interest rates in my analysis. From such studies, it appears that the bond had decoupled from the stock market under 5.8%, so unless there is a change to such a calculation, a reduction in rates may have limited positive effects on the stock market. We wont know for sure untill it happens. It appears that the main key now is earnings, and I calculated that for the S&P to get to a P/E of 20, the DOW will be around 6500. 20 is still high compared to historical patterns. You mentioned that it is unwise to compare this market to 1973. Well there have not really been too many periods which had corrections of 20% or more on the DOW. So if you eliminate 1973 and 1929, you are not left with many to compare it with on a statistical basis. It would also be even more unwise to compare this market with one that corrected less than 20%, since we have already hit the 20% decline figure on a intraday basis. I am not a fundamentalist, and only go by analytical systems. Seeya