morning. From the afternoon reports the model projects that the component on the 8/4/14 kill will drop something like -0.60 to -0.90. Sometimes there will be a significant adjustment when we get the Prior Day Reports.

The weakness in the QQQs has opened the Index to QQQ gap to 7.91. There are nine days of data to get us to cash settlement. The model shows that the Index component will need to drop an average of 0.93 per day to get the Index down to where the futures are trading. Not once in the past ten-years has the Index dropped that much in the final nine-days of trading.

There is always a first time for everything, I suppose.

Best wishes,

dhm