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To: Glenn D. Rudolph who wrote (33927)	1/9/1999 7:50:00 PM
From: Jenne	Read Replies (2) \| Respond to of 164684

Liftoff Ahead! That's What These Charts Tell One Technical Analyst By Lauren R. Rublin Happy new year! It's been all that, and more, for the U.S. stock market, which blasted its way to several new highs in the opening sessions of 1999. While fundamental analysts strive to explain the underlying causes for the market's behavior, technicians study charts and sift through reams of data for clues to stocks' future direction and the velocity of their voyage. At Arnhold & S. Bleichroeder, a New York broker, that job falls to John Roque, who helped us prepare and interpret the charts adorning this page. Nasdaq Composite Powered by technology titans such as Microsoft and Cisco, the Nasdaq Composite smashed through its summer highs about a month ago to become the market's new leader. Now trading 16% above its 50-day moving average, the index is likely to continue climbing, but at a slower pace, Roque says. He sees an upside target of 2529, derived by adding the difference between the Nasdaq's July high and August low (515 points) to its former high of 2014.25. His proprietary measure of the Nasdaq's breadth, which subtracts losing stocks from gainers, hit a new high November 5, and he expects to remain bullish so long as breadth points up. Should the tide turn, the Nasdaq could find support back at 2050, the perch from which it launched its current rally. Like the Nasdaq, the S&P "based," or traded sideways, for more than four months, finally breaching its summer peak in early December. Next stop: 1301, followed by an eventual high of 1415. The S&P's breadth has been lagging the rise in the index's price, however, underlining the fact that "the rally has been concentrated in a very narrow group of stocks." S&P 500 The Dow was the last major measure to break out to a new high, primarily because it had just one strong technology component, IBM. Lately, General Electric and AT&T have helped Big Blue with the heavy lifting. By adding the "width" of the Dow's big base, some 1,799 points, to the average's summer high, Roque sees a target price of 11,137. "Having all three indexes at new highs is like having your best players on the field," he says. The laggard Russell completed a four-month base on Dec. 23 by closing above 402. It's been straight up for small stocks since, and the index could be headed as high as 490. Curiously, the Russell has moved virtually in lockstep with the Dow Transports since April, confirming that small-caps languish or flourish in accordance with the outlook for the broader economy. Investors have been bullish about both since early October. Stay tuned.