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To: browser who wrote (54953)	10/8/1998 8:28:00 AM
From: donald sew	Read Replies (2) \| Respond to of 58727

INDEX UPDATE ------------------------- My SHORT-TERM TECHNICALS for alot of the market(NAZ, BKX, DRG,XAl, TRAN, MSH,NDX,ETC) are CLASS BUYS, however the DOW, XMI, HFX, SPX, OEX are in the midrange with the HFX still in OVERBOUGHT range. This was surprising since I thought that most of the indexes would have been oversold(my data not fully undated till following morning). Listing the readings, per my system, of the indexes not oversold. DOW - 48(SMACK IN THE MIDDLE) SPX - 22(LOWER MID RANGE APPROACHING OVERSOLD) OEX - 30(LOWER MID RANGE) XMI(MAJOR MARKET INDEX) - 60(MID-RANGE) HFX(SUPERCAP INDEX) - 80(OVERBOUGHT LINE) What this implies is that these indexes have alot of downside left in them (the higher the number = more downside). What normally happens is that in a negative market(short/mid-term) the overall market will not bounce untill most of the indexes, especially the major indexes, are all in the CLASS BUY status. Since the DOW is at 48, that means that it could have as much as 2-4 more straight down days before getting to CLASS BUY status. In light of the futures being down hard it appears that we could have a negative day by the close. Keep in mind that we have been having late day rallys recently closing the DOW substantially off their lows - will that type of late day action be over starting today?? Im still sticking to my MINI-STAIRSTEP (7500-7900) for a few more days, until 7500 is broken to the downside. We tested the upside limits of this STAIRSTEP in the last 2 days, and we could be testing the lower limits at 7500 soon. My current feeling is that we will get a bounce off the 7500 support first, then a break of it a few days later which should occur sometime next week. I realise that many are calling for the BIG KAHUNA today. I do see a break of 7400 soon, but I feel we will get one last small bounce, which could be only intraday. seeya