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To: James Strauss who wrote (55995)	10/21/1998 4:22:00 PM
From: S. Chiang	Read Replies (2) \| Respond to of 58727

Anyone knows what caused the S&P future to sell-off to almost 5+ under the fair value after equity market closed?

To: James Strauss who wrote (55995)	10/21/1998 5:05:00 PM
From: donald sew	Read Replies (3) \| Respond to of 58727

Jim, I have been following the NEW HIGHs/LOWs with some detail. You mention that if the NEW LOWS are above negative 40 for 4 days in a row it would confirm a bottom. I presume you mean a bottom right here at the 8500 range, or do you mean some other level???? I attempted to go back 10 years in the NEW HIGHs/LOWs chart to verify that rule. I did see a few examples that supported that rule and some that negated that rule. I did not go back further than 10 years, since there are alot more issues now than previously, and since you gave an absolute number I am assuming that such rule is based on data from the recent past. Right now there are about 3500 issues in the NYSE, which I believe has basicly increased over the years. Your number 40 represents 1.143 percent of the total issues. I hope my question is clear. Is there another variable that would better clarify that rule, like new lows above 40 and new highs above ________? What is your source of this rule, since on a statistical basis there are some loopholes when I was checking. I am very interested in the NEW HIGHs/NEW LOWs as an important indicator and just trying to learn as much about it as possible. Seeya