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RealTime IT News

Stocks Mixed Ahead Of Fed Meeting

Tech stocks rose but blue chips slipped ahead of Tuesday's Federal Reserve meeting on interest rates.

The ISDEX http://www.wsrn.com/apps/ISDEX/ rose 3 to 167, and the Nasdaq gained 8 to 1877. The S&P 500 slipped fractionally to 1165, and the Dow gave back 29 to 10,577. Volume fell to 1.2 billion shares on the NYSE, and 1.5 billion on the Nasdaq. Advancers led 17 to 13 on the NYSE, and 19 to 15 on the Nasdaq.

After the close, OSI warned, which also weighed on merger partner Ciena .

During the day, eRoom soared 70% on news that Peter Lynch had taken a 7.9% stake in the hotel room vending technology company.

McAfee.com surged 25% on news that parent company Network Associates will repurchase the company.

InfoSpace gained 14% after raising guidance.

EarthLink rose 6% on a positive Barron's piece.

Portal Software rose on a deal with Terra Lycos .

Microsoft slipped on concern that AOL may replace Microsoft's Internet Explorer with AOL's Netscape browser.

Some technical comments on the market: Note: To see the charts in the text email newsletter, click on the internetstockreport.com story link at the top of the newsletter.

The Dow (first chart) continues to struggle with that big upper trendline; whichever way the index finally breaks from that line could be worth a good move. The longer it lingers, however, the more likely the market is to correct here, potentially into the end of the week or month. There are a number of indicators that suggest a potential top here, but mutual funds and institutions should experience strong inflows into mid-April, which could support the market a while longer. 10,500, 10,475, 10,425 and 10,300-10,380 are support, and 10,650-10,800 is resistance. The S&P (second chart) has support at 1155 and 1138-1142, and significant resistance at 1180. The Nasdaq (third chart) faces major resistance between 1880 and 1910. Support is 1860, 1845-1850, 1830, and 1793-1805. The SOX (fourth chart), the semiconductor index, has support at 575 and resistance at 638.

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Special report: For a free introduction to technical chart patterns, visit http://www.internetstockreport.com/guest/article/0,1785,2571_500051,00.html.