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Friday - March 31, 2006

Finance Weighs on the Big Boys

Weakness in the Finance sector is weighing on the broader market. The Finance SPDR (XLF) led the broad market higher from mid January to mid February and then formed a gravestone doji and gap down in mid March. XLF continued lower and formed a falling flag over the last few weeks. Finance is the biggest sector in the S&P 500 and the price weighted Dow also features a number of high priced Finance stocks. As long as the falling flag holds (33), weakness in this key group will weigh on the S&P 500 and Dow.

By Arthur B. Hill - Fri 31-Mar-06 at 05:18AM in Sectors
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The Dow Retraces

Even though the Dow has suddenly weakened, the big trend remains up for this key Average. The Dow surged in March (~10900 to ~11350) and the current decline has retraced 50-62% of this advance. This is a normal retracement so far. There is a lot of support around 11050 from the October trendline, broken resistance and the Feb-Mar flag. I would not become too concerned as long as this level holds.

By Arthur B. Hill - Fri 31-Mar-06 at 05:17AM in Indices
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BBH Firming at Support

The Biotech HOLDRS (BBH) is firming just above key support at 190 and a triangle has taken shape over the last few weeks. This is a neutral pattern dependent on a break to establish a directional bias. A break below 190 would signal a continuation of the Nov-Feb decline and be quite bearish. Should the index hold support, a breakout at 200 would be bullish. That seems a long ways off though and more aggressive traders may want to focus on the harami that formed this week (long black candlestick and smaller white candlestick). This is a potentially bullish candlestick reversal and a move above 195 would start a move higher within the triangle.

By Arthur B. Hill - Fri 31-Mar-06 at 05:17AM in Industries
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Tuesday - March 28, 2006

Oil Forms Rising Flag/Wedge

Let’s play a little what if. What could spur a rally on Wall Street? First, a sharp drop in oil prices could prompt the bulls. WTIC remains in an uptrend, but formed a rising flag or wedge over the last few weeks. These are POTENTIALLY bearish patterns that need to be confirmed. A move below the lower trendline and prior low (61) would confirm this pattern and project further weakness towards 55. As long as support holds, the bulls rule and this flag/wedge is only potential. XLE is challenging resistance at 55.

By Arthur B. Hill - Tue 28-Mar-06 at 05:09AM in Oil
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Transports Ignore Rising Oil

Despite a continuing bull run in oil, the Dow Transports is hitting new all time highs. First it was truckers, then the airlines rebounded from the abyss and now the rails are hitting new highs. The only potential weakness here is the overbought condition of the Average. Transports stocks are not concerned about high fuel prices and this implies that economic strength outweighs the high price of oil.

By Arthur B. Hill - Tue 28-Mar-06 at 05:08AM in Industries
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Bond Market Suggests Further Tightening

The second item that could stoke the bulls is a surprise from the Fed. There are two problems here: predicting the Fed language and predicting the market’s reaction. I think the market would react positive to “dovish” words indicating less inflation or moderating growth, both of which would reduce the propensity to keep raising rates. However, as I pointed out yesterday, there is nothing in the 5-year Note Yield ($FVX) chart to suggest a more accommodative stance.

By Arthur B. Hill - Tue 28-Mar-06 at 05:07AM in Bonds
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Stocks and Rates Rise Together

But wait! The stock market appears to like rising interest rates. The 5-year Note Yield ($FVX) bottomed in September and the S&P 500 Equal Weight Index (RSP) bottomed in October. Both have been rising since January and both are trading above their November highs. What the….? This means that the initial reaction to hawkish comments from the Fed would likely be down, but the larger uptrend could still pull trump. Key support at 170 holds the key. It just keeps on rising.

By Arthur B. Hill - Tue 28-Mar-06 at 05:06AM in Indices
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Friday - March 24, 2006

Oil Holds Support

Oil rose sharply yesterday. The move is enough to solidify support around 60 and keep the long-term uptrend alive. The advance since February looks like a rising flag (consolidation), but it is still rising with higher highs and higher lows. It would take a move below 59 to break flag support and signal a continuation of the Jan-Feb decline. Barring a support break and trend reversal, higher prices are expected with resistance at 70.

By Arthur B. Hill - Fri 24-Mar-06 at 06:44AM in Oil
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Rates Also Hold Support

A strong housing report led to higher interest rates and lower bond prices. The 10-year T-Note Yield held support just above 4.6% (46 on the chart). This level stems from broken resistance and the trend for interest rates is up. The FOMC meets next week and is widely expected to boost the Fed funds rate .25% to 4.75%. This is probably the last trading day to establish direction before the pre-fed funk sets in on Monday.

By Arthur B. Hill - Fri 24-Mar-06 at 06:44AM in Bonds
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Stocks Reflect Economic Strength

Why should we expect rates to rise? Because the broad market is strong and this is more indicative of economic strength than weakness. The S&P 500 Equal Weight Index (RSP) notched a new all time high last week and remains in a clear uptrend. That trend may have slowed over the last four months, but the index still managed to move above 170 in January and hold that breakout.

By Arthur B. Hill - Fri 24-Mar-06 at 06:43AM in Indices
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Nasdaq Consolidates Near Resistance

Looking at the Nasdaq over the same timeframe, a picture of relative weakness emerges. The Nasdaq surged in January and then consolidated the last three months. The index tried four times to break above 2300 and cannot seem to hold this level for more than a week. At worst, the trend is flat. At best, we have a sharp advance (2050-2330) and a triangle consolidation, which is a mere rest in the ongoing uptrend.

By Arthur B. Hill - Fri 24-Mar-06 at 06:43AM in Indices
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Thursday - March 23, 2006

Inverted Hammers for HHH

The Internet HOLDRS (HHH) formed inverted hammers on Monday and Tuesday. A small white candlestick formed on Wednesday and the stock actually showed some relative strength. The stock is clearly oversold and firming, but not showing enough strength to forge a reversal yet. Traders should watch for a break above 58 to confirm the inverted hammers and stoke the Nasdaq bulls.

By Arthur B. Hill - Thu 23-Mar-06 at 09:31AM in Industries
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Semis Trying to Firm

The Semiconductor HOLDRS (SMH) is firming near the lower trendline of a falling price channel. After a sharp decline last Thursday, the stock firmed over the last three days. A move above 37 would recoup broken support and break the mid March high. This would be short-term bullish. If SMH and HHH breakout, then the Nasdaq would surely rally. That is still a big “if” though.

By Arthur B. Hill - Thu 23-Mar-06 at 09:30AM in Industries
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XLK Getting Big Challenge at Resistance

The Information Technology SPDR (XLK) is getting a battle with resistance. The stock formed a dark cloud last week and a shooting star this week. Despite a weak open, XLK recovered on Wednesday and this shows resilience to keep the uptrend alive. Medium-term support is set at 21.5 and a move below this level would reverse the medium-term uptrend.

By Arthur B. Hill - Thu 23-Mar-06 at 09:29AM in Sectors
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XLF Firms at Trendline Support

The Finance SPDR (XLF) firmed right at trendline support yesterday and this kept the S&P 500 buoyant. Minor support is now at 32.7 and this is the level to watch for signs of weakness in XLF and SPX.

By Arthur B. Hill - Thu 23-Mar-06 at 09:28AM in Sectors
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XLY Holding Breakout - barely

The Consumer Discretionary SPDR (XLY) broke triangle resistance and this breakout is getting a challenge over the last few days. The upper triangle trendline extension turns into support and this breakout is OK as long as 33.6 holds. A move below 33.6 would question the breakout and put this key sector back in the trading range.

By Arthur B. Hill - Thu 23-Mar-06 at 09:27AM in Sectors
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Tuesday - March 21, 2006

Russell 2000 Turns Indecisive

The medium-term trend for the Russell 2000 ($RUT) remains clearly bullish, but the Russell 2000 ETF (IWM) is getting indecisive at its new highs. Two doji formed over the last two days and the stock has not moved much since surpassing 74 on Wednesday. A move below 73 would be short-term bearish, but still within a larger uptrend. Key support on the daily chart is set at 70. A move below this level would break the blue trendline, the 50-day SMA and the Feb-Mar lows. Then, and only then, will a downtrend begin.

By Arthur B. Hill - Tue 21-Mar-06 at 02:51PM in Indices
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Something’s Got to Give

The iShares ~20-year T-Bond Fund (TLT) is headed down and the iShares REIT ETF (IYR) is headed up. And I thought that REITs were interest rate sensitive. REITs are looking at something else or they are in for a big surprise. The iShares ~20-year T-Bond Fund (TLT) broke support at 89.7 with a number of gaps in early March. This is bearish for bonds and bullish for rates (up). REITs are rising along with rates and the iShares REIT ETF (IYR) remains in a clear uptrend. It would take a move below 70 to reverse this uptrend. However, as long as TLT moves lower (rates higher), I would be skeptical of recent strength in REITs.

By Arthur B. Hill - Tue 21-Mar-06 at 02:49PM in Industries
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EWJ Breakout

Japan won the World Baseball Classic and the iShares Japan ETF (EWJ) celebrated with a triangle breakout. The triangle represents a consolidation or rest after an advance. The breakout signals a continuation of the prior advance. Even though I find the breakout bullish, I also find Japanese stocks a bit overextended. As long as 13.7 holds, this breakout is in great shape. A move below 13.7 would question the breakout and further weakness below 13 would be outright bearish.

By Arthur B. Hill - Tue 21-Mar-06 at 02:43PM in International
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Friday - March 17, 2006

The S&P MidCap Index Tests Resistance

The current consolidation (755-785) is just a bigger version of the prior consolidation (black oval). In December, the index broke through 750 on the third try and moved above 780. This is the third try to break above 785 and a successful breakout would target a move above 800.

By Arthur B. Hill - Fri 17-Mar-06 at 07:06AM in Indices
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The S&P 100 Takes the Lead

While the S&P MidCap Index tests resistance, the S&P 100 is trading above resistance and large-caps are leading. Dec-Feb amounts to a massive consolidation and the breakout signals a continuation of the Oct-Nov advance. I will be watching the October trendline and March low for a trend reversal

By Arthur B. Hill - Fri 17-Mar-06 at 07:05AM in Indices
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Thursday - March 16, 2006

A New 52-week High for the Dow Industrials

Is a new 52-week high bullish or bearish? Some may consider the Dow overbought and in a resistance zone from the 1999-2001 highs. Yes, the Average is getting overbought. And yes, there is a lot of resistance around 11000-11500. These are potential problems. The current state of the Average is bullish though and we should expect further gains.

By Arthur B. Hill - Thu 16-Mar-06 at 09:17AM in Indices
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New All Time High for Dow Transports

Transportation (rail, air, land) is the backbone of our economy. Goods move when economic times are good. Judging by the Dow Transports, it would appear that both goods and stocks are moving. First, it was the truckers. Then it was the airlines rebounding from the abyss. Now it is the railroads surges to new highs. The Dow Transports only has 20 stocks and it does not take much to move the Average. Whatever the reason, the new highs in the Dow Transports and Dow Industrials make for a Dow Theory bullish confirmation to keep the bull market alive and well.

By Arthur B. Hill - Thu 16-Mar-06 at 09:17AM in Indices
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Nasdaq Still Lagging

While the Dow and S&P 500 move to multiyear highs, the Nasdaq has yet to break resistance. The index formed a triangle over the last few months and is nearing upper trendline resistance. The surge off support is impressive and a break above 2330 would signal a continuation of the Oct-Nov advance. This consolidation has been a long one, but now it appears that stocks are preparing for another leg higher.

By Arthur B. Hill - Thu 16-Mar-06 at 09:16AM in Indices
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Tuesday - March 14, 2006

Nasdaq Net New Highs

The 10-day SMA for Nasdaq Net New Highs has been pretty good at calling the medium-term swings in the Nasdaq. The indicator broke down in August and this foreshadowed the summer decline. After plunging into negative territory in October, the indicator recovered and broke resistance in November to turn bullish again. Flash forward to March 2006 and the indicator is breaking down to flash a sell signal. The 10-day SMA broke the four month trendline, formed a lower high and moved below its prior low. This makes for a downtrend in new highs. However, the indicator is still above zero and positive overall. This may keep trading choppy and a move into negative territory would signal that the downtrend was picking up speed.

By Arthur B. Hill - Tue 14-Mar-06 at 09:34AM in Breadth
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Japan Consolidates Huge Gains

The Japanese stock market has been one of the world’s stars over the last 12 months. After a 40% advance in the second half of 2005, the iShares Japan ETF (EWJ) consolidated the last few months. The pattern looks like a pennant or triangle and a move above the late February high (14) would signal a continuation higher. A support break would argue for a deeper correction that could extend to around 12-12.5. Such a pullback might offer a good chance to partake in the Japanese recovery.

By Arthur B. Hill - Tue 14-Mar-06 at 09:33AM in International
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Germany iShares Getting Overextended

The iShares Germany ETF (EWG) has also been a stellar performer since July 2005. The stock formed a reaction low in October and moved to the upper channel trendline in late January. This area represents overbought territory and the going has gotten a lot tougher around 22. However, the stock has yet to break down and surged on Friday. This establishes support at 21.3 and the bull is in firm control as long as this level holds. A move below 21.3 would argue for a correction or consolidation with a downside target around 20-20.5.

By Arthur B. Hill - Tue 14-Mar-06 at 09:33AM in International
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Friday - March 10, 2006

Dow Forms Falling Flag

The Dow has a falling flag working over the last three weeks (magenta trendlines). This is a corrective pattern that requires confirmation with a breakout at 11100. Such a move would signal a continuation of the February advance. As long as the flag falls, we must entertain the broadening formation, which is a big bad bearish reversal pattern.

By Arthur B. Hill - Fri 10-Mar-06 at 01:49AM in Indices
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NDX And Dandruff

The Nasdaq 100 has a head-and-shoulders pattern working over the last few months with neckline support at 1633. The index already broke rising wedge support and failed to hold its gains on Thursday. Further weakness below 1633 would target a decline to around 1500. Ouch.

By Arthur B. Hill - Fri 10-Mar-06 at 01:49AM in Indices
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Nasdaq 100 Equal Weight

This chart shows the Nasdaq 100 Equal Weight Index. The “normal” Nasdaq 100 is weighted by some fancy formula at the Nasdaq. The weighting process using market cap, but also some other variables and that prevents the largest stocks from dominating. The Nasdaq 100 Equal Weight treats all 100 equally and is good to measure broad strength or weakness. This chart is holding up much better than the Nasdaq 100. A trading range formed over the last two months and the index is testing support. Notice that a shooting star formed at resistance last week (blue oval) and a doji at support this week (gray oval). A break below 1090 would be bearish.

By Arthur B. Hill - Fri 10-Mar-06 at 01:49AM in Indices
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Thursday - March 09, 2006

Consumer Staples Lead the Way

The day belonged to the Consumer Staples SPDR (XLP) as the stock surged for the second day on good volume. CVS, TAP, CL, ACV and WAG led the way higher. This shows that money is moving into relative safety.

By Arthur B. Hill - Thu 09-Mar-06 at 06:33AM in Sectors
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BUD Bubbles

Although not in the top tier, BUD was also a standout performer. The stock is challenging resistance from its Jan-Feb highs with a surge on good volume yesterday.

By Arthur B. Hill - Thu 09-Mar-06 at 06:33AM in Stocks
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Walgreen Holds Gap

Walgreen (WAG) gapped up and broke trendline resistance in mid February with high volume. After a pullback the last two weeks, the stock reversed and the gap is holding. The gap offers support and yesterday’s high volume move keeps the breakout in play and the uptrend in place.

By Arthur B. Hill - Thu 09-Mar-06 at 06:32AM in Stocks
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KO Also Comes To Life

Coca-Cola (KO) broke trendline resistance in February and consolidated the last two weeks. The breakout is holding and the trendline extension is turning into support around 41.5. Notice that On Balance Volume (green line) is stronger than the stock and this shows that upside volume is outpacing downside volume.

By Arthur B. Hill - Thu 09-Mar-06 at 06:31AM in Stocks
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Wednesday - March 08, 2006

Consumer Discretionary Weakens

This is not a pretty picture. The Consumer Discretionary SPDR (XLY) failed to move above resistance at 34 and gapped below the rising wedge trendline. The stock remains above consolidation support at 32.8, but further weakness below this level would be bearish for the sector and the S&P 500.

By Arthur B. Hill - Wed 08-Mar-06 at 06:08AM in Sectors
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Staples Strengthen

While money moved out of the Consumer Discretionary SPDR (XLY), it moved into the Consumer Staples SPDR (XLP) as the stock opened weak and closed strong. The February breakout is holding and broken resistance around 23.4 turned into support. This is a classic defensive maneuver as money moves from cyclicals to staples.

By Arthur B. Hill - Wed 08-Mar-06 at 06:08AM in Sectors
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Internet Remains Weak

The Internet HOLDRS (HHH) remains the weakest of the Nasdaq groups. There is some support around 57 from the February low, but this no reason to turn bullish. At the very least, I would like to see a move above last week’s high at 60 before considering a bottom pick. As long as 60 holds, the Nasdaq is not going anywhere.

By Arthur B. Hill - Wed 08-Mar-06 at 06:07AM in Industries
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Software and Semis Form HS Patterns

The Software HOLDRS (SWH) has a head-and-shoulders reversal pattern working since December and neckline support at 36 holds the key. The pattern is just a consolidation now, but a move below 36 would turn the medium-term trend bearish. This would weigh on the Nasdaq. The Semiconductor HOLDRS (SMH) also has a head-and-shoulders working with neckline support at 36.5.

By Arthur B. Hill - Wed 08-Mar-06 at 06:05AM in Industries
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Tuesday - March 07, 2006

Bonds Gap Down Yet Again

Bonds were rocked yesterday and the iShares ~20-year T-Bond Fund (TLT) gapped below support at 89.7. This was the fourth gap in a row and the bond ETF is nearing support from the November low. Despite this support, I would expect lower prices ahead. TLT broke trendline support in late January, consolidated in February and broke support in March. This signals a continuation of the Sept-Oct decline and a move below 88 is likely. Key resistance is now set at 91.5 and it would take a move above this level to reverse the downtrend.

By Arthur B. Hill - Tue 07-Mar-06 at 07:11AM in Bonds
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Rates Break Out

Rates move up when bonds move down. The 10-year T-Note Yield broke consolidation resistance on Thursday and continued higher Fri-Mon. The breakout forges a 52-week high in the 10-year T-Note Yield and this is not good for interest rate sensitive issues. The next resistance level is around 4.9-5%.

By Arthur B. Hill - Tue 07-Mar-06 at 07:10AM in Bonds
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Utilities Feel the Heat

The Utility SPDR (XLU) felt the pressure of higher interest rates with a sharp decline over the last four days. The stock broke trendline support and finished just above double top support at 31.3. A move below this level would reverse the current uptrend and project further weakness towards 29.

By Arthur B. Hill - Tue 07-Mar-06 at 07:10AM in Sectors
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Finance Still Holding Up

The Finance SPDR (XLF) also weakened over the last few days, but remains near its February highs. The stock broke diamond resistance in mid February and moved to a new high above 33. With the reaction high at the end of February, I drew a broadening formation, which is a bearish pattern. These patterns reflect both indecision and volatility with the higher highs and higher lows. They are difficult to play and most of the time it is better just to stay away.

By Arthur B. Hill - Tue 07-Mar-06 at 07:09AM in Sectors
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Monday - March 06, 2006

Resolution of the Range

Is it any wonder that the major indices are on a road to nowhere? The chart above shows the Consumer Discretionary SPDR (XLY) and is 2+ week trading range. There have been a number of fits and starts, but no break either way. This is the most economically sensitive sector and XLY also has a high correlation to the S&P 500. Therefore, the S&P 500 is unlikely to move higher unless this key sector breaks resistance.

There are three groups dragging their feet within the Nasdaq. The Internet HOLDRS (HHH) led the way down until early February and then moved into a consolidation pattern the last few weeks. While the Nasdaq moved slightly higher the last few weeks, HHH remains range bound and needs to break 61 to revive the bulls.

It’s been a right awful mess for the Semiconductor HOLDRS (SMH). AMD is pulling the group higher and INTC is dragging the group lower. Given the carnage in Intel the last two months, this ETF is actually holding up quite well. Nevertheless, it has yet to break resistance and end the five week trading range. A small pennant or flag formed over the last two days and a move above 39 would be most bullish.

The Software HOLDRS (SWH) makes up the last piece of the going nowhere puzzle. This ETF surged at the end of January, but failed to hold these gains and moved into a trading range. It has been one flat pancake the last four weeks. Watch 37.6 up and 36.5 down.

These are the four to watch for signs of strength or weakness in the S&P 500 and Nasdaq. The Nasdaq has been pulled higher by the Networking iShares (IGN) lately and could use a little help from its friends. Should two of the Nasdaq groups break resistance, this would be most bullish and also give a lift to the S&P 500.

By Arthur B. Hill - Mon 06-Mar-06 at 09:56AM in Industries
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Friday - March 03, 2006

The Yield Curve Yet Again

SmartMoney has a good article on the yield curve as well as a nice Java graphic that shows the yield curve over time. The article explains the difference between a flat, normal, inverted and steep yield curve. SmartMoney.com (click here)

The current curve is flat and the last inversion was in 2000. The above example shows the inversion from November 2000. Needless to say, the stock market suffered over the next two years and the Nasdaq did not bottom until October 2002.

Even though the yield curve is not inverted just yet, there is so much talk about the yield curve that I must conclude that it is already priced into the market. What I find truly amazing is that the Russell 2000 hit an all time higher, the Dow is trading near a 4 1/2 year high, the Nasdaq has been rallying since October 2002 and the Finance sector has been unusually strong lately. The S&P 500 Equal Weight Index (RSP) hit a new high last week and remains well above support. The stock market does not appear to be too worried about an inverted yield curve. It should be called the worry curve as all this talk seems to create a wall of worry and bull markets just love to climb such walls.

By Arthur B. Hill - Fri 03-Mar-06 at 05:19AM in Economy
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Bonds Take A Wild Ride

If you think February was a wild ride for stocks, just take a look at the iShares ~20-year T-Bond Fund (TLT). The bond ETF broke support in January and then consolidated in February. The consolidated featured a gap on 17-Feb and a resistance challenge was on. Resistance at 91.5 held firm and TLT gapped down the last two days. The ETF managed to close above the February lows, but these gaps are negative. Further weakness below 89.4 would be bearish for bonds.

By Arthur B. Hill - Fri 03-Mar-06 at 05:18AM in Bonds
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Thursday - March 02, 2006

Double Bottom Breakout for Cisco

Just how high is Cisco? Would you believe a 52-week high. The stock formed a big base over the last 18 months and broke above the summer highs with a high volume surge yesterday. The whole pattern from Nov-04 to Mar-06 looks like a massive double bottom and the breakout opens the door to the mid 20s.

By Arthur B. Hill - Thu 02-Mar-06 at 06:52AM in Stocks
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Networking Leads Nasdaq Higher

The Networking iShares (IGN) moved to a new high yesterday with a breakout at 35. Question: How could we see this coming? Answer: Relative strength. In mid February, the Nasdaq (red line) moved to a 4 week low. In contrast, the Networking iShares (IGN) held most of its gains and consolidated near its January highs (blue line). The black vertical line shows mid February low for the Nasdaq. IGN held up much better than the Nasdaq. When the Nasdaq finally did bounce over the last few weeks, IGN was close to resistance already and showing good relative strength. Yesterday’s surge in Cisco provided the catalyst and IGN is breaking out to new highs.

By Arthur B. Hill - Thu 02-Mar-06 at 06:51AM in Industries
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Russell 2000 ($RUT) Continues Its Dominance

Most of the yesterday’s headlines focused on the Technology and the Nasdaq. That may be the new story, but the old story remains the same. The Russell 2000 (+1.60%) gained more than the Nasdaq (1.46%) or any other broad index for that matter. In addition, the Russell 2000 closed at a new all time high. I highlighted the flag breakout on 21-Feb and just over a week later this signal is bearing fruit. It is just a continuation of the existing uptrend and there are NO signs of weakness.

By Arthur B. Hill - Thu 02-Mar-06 at 06:50AM in Indices
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Wednesday - March 01, 2006

Too Late to Blame it on Google

The Nasdaq and the Internet HOLDRS (HHH) have been sick long before the Google warning yesterday. This is just the icing on the cake. Google is trading near a support zone and key retracement, but needs to recover from yesterday’s losses to reverse the Jan-Feb downtrend.

Yahoo! peaked in early January and Google peaked in mid January. Both stocks have been moving lower ever since. While Google managed to bounce a couple times, Yahoo and the Internet HOLDRS (HHH) were not so lucky. These two just firmed for a while and then continued lower. Note: Google is not part of the Internet HOLDRS (HHH).

Yahoo! and the Internet HOLDRS (HHH) led the Nasdaq higher from September to November. Now, they are dragging it lower and I would not expect a serious rebound in tech stocks until the big internet players turn it around. Yahoo! is trading near support from the prior lows and February trendline. After firming the last few weeks, the stock got knocked again yesterday. As long as 34 holds, I would not take a bounce in the Nasdaq seriously.

The Internet HOLDRS (HHH) chart looks pretty much the same as the Yahoo! chart. The stock firmed after the February gap, but could not hold the gains above 61. Yesterday’s fall reinforces this resistance level and it would take a move above 61 to revive the internet horses and the Nasdaq.

By Arthur B. Hill - Wed 01-Mar-06 at 06:17AM in Industries
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