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<DIV><FONT size=2>In my experience, </FONT></DIV>
<DIV><FONT size=2>a/ former breakout congestion zones tend to lend better
support as compared to spike lows.</FONT></DIV>
<DIV><FONT size=2>b/ parabolic ascents retrace all of the parabolic curve and
then go into an extended trading range lasting at least a few months. This was
extensively explained in April on this list.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>I would venture forth to say that the May 24 low will go by
the wayside just as many other support levels have gone. </FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>The mid-high 2000's are the more logical area for support on
the Nasdaq.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>I believe Steven Poser has also arrived at similar numbers
using some other method.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>Regardless of level, there remains nothing bubbling under the
New Highs screens that sets up as a rally that can stick. Most of the New High
list components are comprised of stocks already in uptrends, as opposed to
basing just under the highs.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>On both exchanges, my weekly scans of each of the charts
making new highs/lows has prompted me to rechristen CANSLIM.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>CANSKIM, as in skimmed milk, no fat, all murky cloudy
water.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>Finally, we're seeing the Financials give way these past few
days.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>Given their relative overweight in the Advance Decline line
calculation, it is difficult to see how breadth based models will turn
bullish - from an intermediate term perspective.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>So - with a lack of Breadth support and a lack of tight
congestions near New High ground, the prospects of any sustained rally are slim
indeed.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>Yes, the MACD type oscillators will be divergent on a retest
of the May 24 lows and this may setup some springboard rallies.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>Which, if I were an investor long this market, I would be
inclined to sell into and bless the Lord for getting me out whole.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>I believe the US equity market has put in a rounded top of
some significance, one that is not predicated upon by tax loss selling by mutual
funds, liquidity flows by the FRB or any demographic like Baby Boomers. Once the
funds are done, the individuals begin. The individuals have until next April to
keep selling. Of course, there is no dearth of margin calls on executives or
individuals in the interim.... We've lost Tech, we've lost financials, we've
lost the bond market, we've gained inflationary rallies and deflationary bear
trends.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>The stair step pattern noted by Ms Cohen at Goldman seems to
be history.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>If history is any guide, NDX will look like the SOX looks now
- instead of the other way around.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>But that's just me, and I'm but a flea's follicle on the
map.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>Gitanshu</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2></FONT> </DIV>
<BLOCKQUOTE
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV><FONT face=Arial size=2>If oex can hold at around the low made on
5/24/00. 724.75 </FONT></DIV>
<DIV><FONT face=Arial size=2>the nasdaq can hold at the low of the same
date(5/24/00) at 3042.66 and the spx at the low of 1361.09(same date}.
</FONT></DIV>
<DIV><FONT face=Arial size=2>Under this interpertation the lows made by most
indices on 5/24/00 become more signifant as a support level for a good
rally. </FONT></DIV></BLOCKQUOTE>
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