Bulls Pull One Out

Stocks recovered from a sell-off on Monday to end the day in the green.

The Nasdaq rose 11 to 1391, the S&P 500 climbed 7 to 947, and the Dow added 46 to 8919. Volume fell to 1 billion shares on the NYSE, and 1.43 billion on the Nasdaq. Advancers led 22 to 9 on the NYSE, and 22 to 12 on the Nasdaq.

Oracle slipped 2% after Bernstein cut estimates.

Lucent gained 25% on reports of more layoffs and buying by value managers.

PeopleSoft lost 3% on pricing concerns.

Ciena rose 5% on an upgrade.

Applied Micro lost 5% on a downgrade.

AOL continued to lose ground on reports of investigations.

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.

If the S&P 500 (first chart below) turns down below 951 or so, it could form a head and shoulders top in the intraday chart. A break below 930 would target 897 at a minimum. In the daily chart (see second chart below), 943-944 looks like critical support, while a break above 951 could target 975. The S&P 100 (third chart) made a nice save from a breakdown today, but the index has little downside room tomorrow. The Dow (fourth chart) has critical support at 8750, and could reach 9100 or 9250 if it can hold that level. The Nasdaq (fifth chart) has support at 1355 and 1340 (critical), and very tough resistance at 1411. Finally, another look at the massive head and shoulders tops in the S&P 500 and the Wilshire 5000 (sixth and seventh charts). No breakout above those necklines will hold unless volume really begins to pick up.







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