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To: Broken_Clock who wrote (54263)	9/29/1998 10:25:00 PM
From: Lee Lichterman III	Read Replies (1) \| Respond to of 58727

>>Wedge still in place<< Yes and notice the range is tapering to a narrower range and volume picked up on the down side. We could be approaching the capitulation point shortly. Unfortunately I have played most of my put targets with the biggest swings already. AMZN had a bearish candle pattern today but it is pretty dangerous to try. Maybe DELL? I show it up against an upper trend line now.

To: Broken_Clock who wrote (54263)	9/29/1998 10:42:00 PM
From: donald sew	Read Replies (3) \| Respond to of 58727

INDEX UPDATE ------------------------- Interesting ending for the day. After the announcement the market dropped about 110 points, then up 130 points, then down 70 to close at negative 28. The DOW actually closed in the middle of the days HIGH and LOW, which is a pretty clear sign of indecisiveness. The CANDLESTICK is also a SPINNING TOP, just another sign of indecision. Well, the news is out and the issue of decreasing rates is over, until the next round. For the short-term, 1-2 weeks, is there much to hold or push the market higher immediately? Bad news can now, more easiliy, influence and strengthen the downward pressure, since the issue of decreasing rates is over for the time being. My SHORT-TERM TECHNICALS are at around 70-75, which is in the upper mid range, just slightly below the OVERBOUGHT line at 80. Such means that there is a much greater downside than upside. The UPSIDE POTENTIAL is 2-3 days(150-350 points) and the DOWNSIDE POTENTIAL IS 3-5 days(300-600 points). This is only a mathematical calculation based on consecutive days in a certain direction. Right now the bias is to the downside, but please keep in mind that when it is in the mid-range, the direction is never clear since the market is susceptible to news in the mid-range. At 75, it is close to the overbought line but still is part of the mid-range. The closer to 50 the more susceptible the market is to events. In other words the market can technically still move up, but that probability is less, since the bias is to the downside and the reading at 75. With todays performance, it appears that the UPPER TRENDLINE of the RISING WEDGE on the DOW has a good chance of holding. Since the UPPER TRENDLINE is on an incline it is now pointing at about 8250-8275 for the next 2 days. The LOWER TRENDLINE of this RISING WEDGE is also on an incline and pointing at 7950-8000 for the next 2 days. I mention this since the LOWER TRENDLINE, which is inclining, is catching up to the DOW, and it will not take that much of a drop in the DOW to break the LOWER TRENDLINE of the RISING WEDGE. A break of the LOWER TRENDLINE would be the first negative sign implying that the DOW should head lower to the next support line at 7700 and possibly 7500. Also, would like to mention that with the RISING WEDGE, the drop after breaking the LOWER TRENDLINE could be fast and furious. Watch for a rise in volume on the downside as a key that the DOW is breaking to the downside. I read JERRY FAVORS comment and also feel that we could have 1-2 more flat days like today or even slightly up, but the probability is slightly more in favor of going down. Since today could be considered the top in light of the announcement (even though yesterday was higher), the 3rd day after the TOP is commonly a strong DOWN DAY, in this case such should occur on Friday. Just in case the market moves up above yesterdays highs then such timing of course will change. No evidence yet that the support area of 7400-7500 will be pierced but this RISING WEDGE could be an ominous sign. Seeya