STOCK MARKET WATCH, Tuesday 27 April

[ozymandius]

Tuesday April 27, 2004

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 272
DAYS SINCE DEMOCRACY DIED (12/12/00) 3 YEARS, 137 DAYS
WHERE'S OSAMA BIN-LADEN? 2 YEARS, 190 DAYS
WHERE ARE SADDAM'S WMD? - DAY 404
DAYS SINCE ENRON COLLAPSE = 886
Number of Enron Execs in handcuffs = 18
Recent Acquisitions: Skilling
ENRON EXECS CONVICTED = 2
Other Arrests of Execs = 54

U.S. FUTURES & MARKETS INDICATORS
NASDAQ FUTURES-----------------------------S&P FUTURES




AT THE CLOSING BELL ON April 26, 2004

Dow... 10,444.73 -28.11 (-0.27%)
Nasdaq... 2,036.77 -13.00 (-0.63%)
S&P 500... 1,135.53 -5.07 (-0.44%)
10-Yr Bond... 4.43% -0.02 (-0.43%)
Gold future... 396.60 +0.90 (+0.23%)

DOW..........................NASDAQ.......................S&P

||


GOLD, EURO, YEN and Dollars


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PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [e-mail]

For information on protests and other actions Citizens For Legitimate Government

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[ozymandius]

1. WrapUp by Jim Willie

INTERVENTION VS. MAIDEN FLIGHT

Several observations are worth noting about the current so-called recovery and the required actions to keep it sustained. Monetary expansion by the Federal Reserve, extended credit for consumption, and bond market liquidity have all been tremendous in magnitude. Federal government tax rebates, and other tax benefits had been equally vast last year. Foreign capital supply needs have been staggering in volume, steady at $1.5 billion per day. Their central banks are now expected to keep us propped, which is seen as positive, with no sense of anything awry. Bond carry trade has been critical in putting speculative forces to work, probably the greatest juggernaut of false power in our economic machinery and production of spendable wealth. The consequence of over-reliance upon bond speculation is that great risk has been created in spring-loaded low interest rates. Mortgage agencies have provided primary pools for new mortgages, for refinances, and for home equity extractions. Large banks and brokerage houses have shown outsized earnings in recent quarters, from a bumper crop in their bond speculation, combined with liquidity-driven stock rally gains. The US Economy depends heavily on consumption, and spending draws on all of the above-cited sources. Residential real estate is the foundation of the inflated economy, which is put at risk if rising rates or declining income leads to stalled or falling housing values.

-cut-

AN ECONOMY DEPENDENT ON COLLUSION

The Greenspan Fed has finally broadened its view when prowling for price inflation signals. For months, they focused foolishly upon the faulty CPI index, where many critical items are ignored, and dynamic scoring sidesteps cleverly the rising components. They finally admit to rising prices for commodities, energy, intermediate goods (like steel), even scrap items, in reaction to the alarm bells rung by the both the Consumers and Producers Price Indexes. So far they have ignored the import price increases registered. Bond vigilantes are raising dust in their fast ride over the horizon. They had been notably absent since 2001, when accommodation began. No longer. Foreign central banks will not abandon the buttresses behind the bond dikes. The Bank of Japan seems overwhelmed, and might be standing down in their mindless support. The system will limp along without continuation of bond bubbles. The mainstay of intervention "IV" injections might more appropriately stand for "intravenous." Take them away, and policy makers had better be correct that the recovery can sustain itself. Herein lies the risk. Distort the data and hope the crippled, distorted, bloated beast will fly without tethered supports. Public confidence in its airworthiness might be unjustified. If the story of growth and progress is misrepresented, then great risks arise for sliding back into recession.

-cut-

In 1994 and 1995, when the Federal Reserve last reversed course, and tightened monetary policy, tremendous havoc reigned over the bond and stock markets. It is loosely reported that $250 billion was sloshing around in various forms of bond speculation at the time. We as a nation have matured, or else grown more wedded to the casino game, eschewing the old fashioned methods of creating wealth. Refer to build it, mine it, grow it, or fish it. We now print it, and apply leverage to the printing press. We celebrate our financial engineering and its output, mislabeled as wealth. Now the derivative pyramid is reported to contain $750 billion in bond speculation. If one third as much money on the casino bond tables caused such disruption ten years ago, imagine the upcoming disruption when the Fed reverses course and tightens in a new cycle. Could bond accidents be the final legacy of Robert Rubin, the chief architect of the carry trade designed for bonds, the dollar, and gold??? He initiated gold sales for USTBond support, and so far has a patient Mother Nature who knows revenge well.

-cut-

Futures contracts and options are the tried & true inflationary tools of elite civil servants standing guard in sentry duty over the colossal coiled bond contraptions. Taking hands off, and entrusting this economy’s maiden flight to the laws of monetary physics will be truly interesting for both observers and participants. Confidence that smooth winds flow in the wake of an unwinding bond market seems badly misplaced. Ironically, gold has indirectly been hurt with early inflationary evidence. Higher rates have lifted the USDollar in a long-term bounce. If the 10-yr TNote yield surpasses 5.5%, it is my opinion that we pass through HELLGATE and lose control. The result might be chaos within the “bond dollar gold triangle,” where disorder may have begun. Unable to admit their errors, G-7 ministers are once again complaining about currency volatility. If and when events turn sour, we have a handy list of scapegoats to blame. The list starts with China, OPEC, and FOREX currency traders. Few can discern that leveraged monetary inflation as a policy for over a decade is to blame.

http://www.financialsense.com/Market/wrapup.htm

[54anickel]

10. Great, and troubling wrap up. I share much of Willie's concerns of

false "bravado" regarding the "recovery" in an election year.
Very troubling indeed.

[54anickel]

16. Greenspan Attacks the Sacred Cows

Another article from Jim Wille. Appears to have been referenced for todays wrap up.

http://205.232.90.194/editorials/willie/willie042704.html

[ozymandius]

21. Sinking below average?

Major stock indices have flirted with their 200-day moving averages. Is that a bearish sign?

Late in March, the Dow Jones industrial average, the S&P 500 and the Nasdaq composite briefly approached their 200-day moving average, a closely watched indicator of market trends.

-cut-

The day is coming, most likely later this year, when all will sink below their longer averages, some technical analysts say.

-cut-

"I've said we would make a cyclical top in the first half of 2004," said Roth of Miller Tabak. "It may not happen until the third quarter, but the ingredients are moving into place."

http://money.cnn.com/2004/04/27/markets/twohundredday/index.htm

[54anickel]

24. Ewwww, I think this is one of the first "bearish" reports I've seen from

the money guys at CNN.

"Ultimately, the market will make a top, and then we will go below those averages," said Phil Roth, chief technical analyst at Miller Tabak & Co. "What we see going on is very normal at the end of a big advance."

Champagne corks popped when the major market indexes crossed above their 200-day moving averages in April 2003 -- it was a sign the bull market had staying power. When the opposite happens, it could be a sign the bears are back.

[54anickel]

2. Good morning Ozy. Those futures are looking a bit dull this AM.

On edit -
Seems the blather hasn't caught up yet. Wonder what it's gonna be.

8:30AM: S&P futures vs fair value: +3.9. Nasdaq futures vs fair value: +8.0. Futures indications improve their standing and continue to point to a higher open for the cash market, supported by a continuous inflow of better than expected earnings reports. There are no economic announcements before the market opens, but the April Consumer Confidence report and the March Existing Home Sales report will be released at 10ET. Please see Briefing.com's Economic Calendar for a preview of consensus and Briefing.com's estimates.

8:00AM: S&P futures vs fair value: +3.0. Nasdaq futures vs fair value: +4.5. Supported by better than expected earnings from the likes of VZ and DD, the futures market is trading higher in a rebound from yesterday's mild losses. Trade in the European bourses is lackluster with FTSE down 0.4%, while CAC and DAX are 0.2%.

[ozymandius]

3. Good morning 54anickel and all.

:donut: :donut: :donut: :donut: :donut: :donut: :donut:

Those futures do look troubled. Typically, they show more enthusiasm at this time before the markets open.

[54anickel]

4. Yes, it seems they are all so pre-occupied with a coming rate hike.

I wonder what the price P/E ratio is at these days? They were pretty steep for a bit there.

[54anickel]

5. Euro's role as reserve growing: Issing

I posted this rather late in yesterday's thread. Thought I'd bring it back one more time today.

http://cbs.marketwatch.com/news/story.asp?guid=%7B1B67CE63-4EF0-49C6-A358-ED0BB953288E%7D&siteid=google&dist=google

CHICAGO (CBS.MW) -- The euro's growing role as a global reserve currency is "unavoidable," the European Central Bank's Otmar Issing said Monday.

The ECB is "neither impeding and neither fostering" the euro's opportunity to gain against the U.S. dollar as a global benchmark currency, said Issing, a member of the ECB's executive board.

Issing made the remarks as part of a conference on the euro held at the Chicago branch of the U.S. Federal Reserve.

The bank plays a "neutral" role in this process, he said, and the markets will determine the pecking order of the world's currencies.

Issing did not directly address current economic conditions or ECB interest-rate policy in his remarks, nor in comments to audience members. He declined to speak with reporters after the event.

more...

[Frodo]

6. WOW!

Who would have thought?

[54anickel]

7. What I found interesting in the article is Issing's divergence from

the IMF, Germany and France view that the ECB cut interest rates. He and Trichet appear to not buy into the US/Greenspan ideology of monetary expansion.

snip>
At a weekend meeting of Group of Seven finance ministers in Washington, German and French finance ministers openly clashed with ECB President Jean-Claude Trichet. They urged him to cut interest rates to further spur eurozone economic growth, which is lagging the United States and Japan, according to a report in the Times of London and other news outlets.

Trichet told the Economics Club of New York on Monday that monetary policy wouldn't be determined by mathematical equations. "Price stability is a necessary condition of long-term growth and job creation,'' he said, according to media reports.

Issing said the ECB continues to use monetary policy with the goal of achieving medium-term price stability, rather than targeting growth or other objectives. "This is the best contribution to smoothing real activity," he said.
/snip>

Whodathunk indeed.

[Frodo]

9. Oh... sorry....

I was replying mostly because you seemed depressed that you didn't get adequate coverage on yesterday's thread and I wanted to draw attention to it for you. I had no particular thoughts on the article itself. :-)

I actually think the Euro is in danger right now. Over the next year I expect it to fall substantially as focus shifts from the US trade deficit to the weaker economies of Europe and the dificulty managing the multi-state currency. The fictional "strength" of the Euro had really been more of a commentary on the weakness of the dollar. The Euro is sitting at level unsupportable by the facts.

[ze_dscherman]

12. I disagree

The correction of the Dollar/Euro rate had been long overdue. There's Dollar weakness, and there's Euro weakness, but in the medium term and especially in the long term I expect the Euro to stand on a sounder economic base. Debt and an enormous trade deficit don't vanish when the stock market becomes bullish or the U.S. economy staggers sidewards or improves only slightly. These are substantial structural problems that need to be adressed by a complete change in fiscal policy.

Even if the European economy stays in the doldrums, it does not need the enormous inflow of money the U.S. needs. Just think of the enormous sums the BOJ has spent in order to stabilize the Yen/Dollar ratio - after a decade of deflation

But in the near term, the Euro could still continue to slide some more, since the focus of public opinion shifts away (or maybe is pointed away) from Dollar weakness to Euro weakness.

[54anickel]

13. Good morning Ze_dscherman

I tend to agree with your disagreement.

The growth in the European economy maybe in the doldrums, but it is real growth based upon the production of goods and services rather than deficits requiring huge purchases of the debt by foreign entities.

I think the Euro may continue to slide a bit but should survive.

I am curious as to your thoughts of the expansion of the Eurozone to the east. Could this prove to be a bit painful for the Euro in the way the reunification of Germany was?

[ze_dscherman]

29. It's only the EU that is expanding,

not the Eurozone.

I've written some days ago, that I have mixed feelings about the expansion to the East. German reunification was (in economic terms) more than just a bit painful. It has been a searing wound ever after. Many East Germans that have lost their jobs - I've been in the midst of it for some time, after the flood desaster. Whole industries were bought with heavy state subsidies, plundered and then left for decay. Many have made a quick fortune, many are doing much better than before. But whole regions in the East have become Germanys poorhouse, left by anyone able and young enough. Also, many weak regions in the West have suffered, because aid they once received had been diverted. Germany, one of the richest countries,still has not absorbed the shock of reunification. This may take a generation or two. But, of course, to me it has been worth it.

The new countries in the EU are a pretty mixed bag. Some are still very poor, and will require substantial aid - in a time when the big spenders like Germany and France have huge economic problems. Some, like Slovenia, bring strong growth and have a better economy than some "old" EU members. For many inhabitants of these countries, the EU will mean rising prices, and lots of competition for their aged industries and old-fashioned agriculture. For the old countries, it will mean pressure on industries and workers, because wages in the East are much lower. Lot's of chances, but many risks. Also, it will be a difficult task to integrate these many different nations, some with a very different cultural and political background, with very little experience in a democratic culture that needs very much patience, tolerance, negotiations and compromise.

This task could become the EU's own imperial overstretch. But right now I feel positive about this. The EU has mastered the integration of many other countries as well, and some have gone through a breathtaking development.
Personally, I feel very European (despite my nick) - mostly because I am at home in several of Europes languages, but also due to many contacts and travel. And, of course, I hope that after centuries of animosities and war, this could become a role model.

[54anickel]

30. Thanks, I think I can understand where you are coming from. It seems

to open a great hope, but not without many challenges.
Thanks for correcting my misuse of Eurozone/EU. I tend to mix up the terminology quite often.

[ozymandius]

8. Casino's open.

9:32
Dow 10,464.60 +19.87 (+0.19%)
Nasdaq 2,041.20 +4.43 (+0.22%)
S&P 500 1,137.43 +1.90 (+0.17%)
10-Yr Bond 4.413% -0.020

[Frodo]

11. Today's Economic Reports.

Consumer Confidence took an unexpected jump to 92.9 (anticipated virtually unchanged 88.5) and a slight upward revision of last month's number. (88.3-88.5)

Existing home sales echo yesterdays unexpectedly strong new home sales figure - Jumping to 6.48Million homes (expected an almost unchanged 6.2M on last months 6.12M). That's back in "spittin distance" of the record.

[54anickel]

14. 11:48 update

Dow 10,503.35 +58.62 (+0.56%)
Nasdaq 2,039.97 +3.20 (+0.16%)
S&P 500 1,142.79 +7.26 (+0.64%)
10-yr Bond 4.437% +0.004
30-yr Bond 5.233% +0.010

NYSE Volume 604,707,000
Nasdaq Volume 806,318,000

11:25AM: Off their earlier highs, the major averages are able to maintain their stance in positive territory... The blue-chip averages are outperforming the Nasdaq on a relative basis due to gains in the oil services and homebuilding sectors, which are among the notable leaders to the upside... The 3.6% advance in the oil services group, as indicated by the OSX index, coincides with a $0.37 increase in the price of crude oil to $37.34/bbl, its highest level in over 10-years...
The surge came after the president of OPEC said that the official target price may increase by about 30% to $32-34/bbl from a range of $22-28/bbl to compensate for a weaker dollar... NYSE Adv/Dec 1885/1180, Nasdaq Adv/Dec 1612/1308

11:00AM: The indices ease after the data-related surge, but still hold solid gains...advancers lead decliners by a considerable margin...still, today's action is largely seen as a bounce after yesterday's declines, continuing the choppy trend of recent weeks...NYSE Adv/Dec 2020/942, Nasdaq Adv/Dec 1790/1056

[54anickel]

15. FOREX-Euro up vs yen and dollar; US data shrugged off

http://www.forbes.com/markets/newswire/2004/04/27/rtr1349029.html

NEW YORK, April 27 (Reuters) - The euro rose against the dollar and the yen on short covering pressures as traders ignored U.S. economic data that supported the case for rising U.S. interest rates and a stronger dollar.

Analysts and traders, short on fundamental reasons, said the euro's surge against the yen as the main driver behind its gains versus the dollar. They cited positioning ahead of Japan's Golden Week holiday, which begins on Thursday, to explain the move.

snip>
Meanwhile in Europe, European Central Bank President Jean-Claude Trichet expressed confidence in euro zone economic recovery, giving little to talk about for euro bears who have speculated recently that the ECB may cut rates to boost growth. The benchmark ECB lending rate is 2 percent.

snip>

"We have seen a lot of cross action buying of European currencies and selling yen. It is mostly in euro/yen but we don't really know why," said David Schoenthal, senior managing director at Bear, Stearns & Co. in New York.

more...

[54anickel]

17. Euro perks up on brigher economic outlook

http://www.channelnewsasia.com/stories/afp_world_business/view/82106/1/.html

snip>
"The overall picture is, I think, one for maybe some renewed dollar weakness to start creeping in, but there are also some positive things for the euro out there as well," said BNP Paribas economist Iain Stannard.

An upturn in the German Ifo business climate index published on Monday "may be the starting point where markets start to reassess the (growth) outlook in Europe," he added.

"The pressure on the ECB to cut (interest) rates is now likely to start easing as we get better data starting to come through," Stannard said.

Also giving the euro a boost, the European Central Bank said the eurozone current account surplus rose to 5.4 billion euros (6.4 billion dollars) in February from a revised surplus of 3.7 billion in January.

In the financial account, combined direct and portfolio investment showed net inflows of 12.2 billion euros in February compared with net outflows of 26.8 billion in January.

more...

[54anickel]

18. Gold imports more than doubled in Q1

http://www.koreaherald.co.kr/SITE/data/html_dir/2004/04/26/200404260036.asp

Korea's imports of gold more than doubled in the first quarter of the year, as importers and manufacturers took advantage of tax breaks and rising prices of the metal, a trade group said yesterday.

Gold imports reached a record-high $1.57 billion between January and March, a 229.7 percent increase from the same period last year, according to the Korea International Trade Association.

The amount surpasses the previous record of $1.42 billion registered in 1997.

snip>

The group attributes the increase to a two-year tax exemption on transactions of gold products which have been in effect since July last year. Also, domestic gold prices have risen about 13 percent over the past year.

more...

[54anickel]

19. Crude futures touch 8-session high - OPEC talk, Iraq lift gas futures to

another new record


http://cbs.marketwatch.com/news/story.asp?guid=%7B113EDED0-4971-4CF3-A371-FC5B2B8A401F%7D&siteid=google&dist=google

SAN FRANCISCO (CBS.MW) -- Hints that OPEC will discuss raising its oil price target and continued concerns over the availability of Iraqi oil pulled crude prices to their loftiest level in eight sessions and gasoline futures to a fresh record high early Tuesday.

"OPEC has acknowledged that they are ready to ratchet up prices jumping possibly 30 percent," said Kevin Kerr, editor of Kwest Market Edge, a financial newsletter.

The cartel's president, Purnomo Yusgiantoro, said Tuesday that OPEC may review its $22 to $28 price target policy when it meets June 3 in Beirut, Lebanon, possibly raising the target by at least $4, according to news reports.

snip>

Still, with the hint of a higher price band "the oil market is getting a wake up call that $40 could be the new 'floor for prices'," said Kerr.

"Traders need to face facts, demand is climbing at a head spinning pace with no end in sight," he said. And "OPEC has not only cut production but now, on 'weaker dollar' fears and basic demand, they want to make the money while they can."

more...


Weaker US$ fears? What weaker US$ fears? Perhaps making the case for pricing in Euros or a basket of currency vs the US$? B-)

[ozymandius]

22. just an observation - with blather

I have personally noticed more SUVs with 'for sale' signs recently. In Atlanta, the gas prices average around $1.71/gal. With $2.50/gal possible by this Summer, I suspect that SUVs will become the next Edsel.
______________________________________________

Greenspan: high oil prices here to stay
-WASHINGTON (Reuters) - Federal Reserve Chairman Alan Greenspan said Tuesday the likelihood of persistently high energy prices would probably help keep U.S. energy use in check and influence energy-related business investments.

"The rise in six-year oil and (natural) gas futures prices is almost surely going to affect the growth of oil and gas consumption in the United States," Greenspan said in remarks prepared for a conference on energy security.

In his speech, which did not touch on the current outlook for the U.S. economy or interest rates, the Fed chief said the "dramatic rise" in oil and natural gas prices in recent years suggested such elevated prices would prove to be the norm.

-cut-

"Although the effect of these developments on energy-related investments is significant, it doubtless will fall far short of the large changes in our capital stock that followed the 1970s surge in crude oil prices," he said, adding that the U.S. economy was much less energy-dependent than in the past.

http://money.cnn.com/2004/04/27/news/economy/greenspan.reut/index.htm

[54anickel]

23. Hi Ozy. Yes, I also so a little blurb on the news that sales of hybrid

and more efficient autos are on the rise. Hope the prices don't go up too much with the demand as that was going to be my next auto purchase once my current beast turns 10, assuming I have a steady job and the economical outlook seems better that is. I've got 2 more years to go, so we'll see.

[54anickel]

27. "much less energy-dependent than in the past" Huh? I suppose we

aren't using as much in manufacturing, since we don't have much of that left, but are we really less energy dependent? We've replaced most of the coal-burning with natural gas, got an awful lot more transportation vehicles along with homes to heat.
I really have no idea if Greenspan's statement is true or not, it just seems rather unbelievable. :shrug:

[54anickel]

20. 1:42 update

Dow 10,524.93 +80.20 (+0.77%)
Nasdaq 2,046.45 +9.68 (+0.48%)
S&P 500 1,145.04 +9.51 (+0.84%)
10-yr Bond 4.436% +0.003
30-yr Bond 5.229% +0.006

1:25PM: First quarter real GDP data is due on Thursday morning...the median forecast from economists calls for a gain at a 5.0% annual rate...this follows 6.2% growth over the last two quarters of 2003...thus, growth would check in at about a 5.8% rate over the past nine months...and, the very strong momentum from retail sales and business investment (durables new orders) into the second quarter also has expectations near 5% to 5 1/2% for the second quarter...
thus, with only two months to go, it appears as if real GDP growth for the full year comprising the second half of 2003 and the first half of 2004 could be as high as 5.6%...no annual figure has come in above 5% since 1982, and even during the "boom" years of 1997, 1998, and 1999, real GDP was only 4.5%, 4.2%, and 4.5%, respectively...NYSE Adv/Dec 2025/1185, Nasdaq Adv/Dec 1657/1425

[West Coast Democrat]

25. Now up only about 25 pts

It's just up and down today

[54anickel]

28. Guess it's time to stock up on the Dramamine again.

[Maeve]

26. 2:49 and the story is changing

Dow 10,469.85 +25.12 (+0.24%)
Nasdaq 2,030.00 -6.77 (-0.33%)
S&P 500 1,137.99 +2.46 (+0.22%)
10-Yr Bond 4.411% -0.022

[54anickel]

31. I am a bit surprised that the US$ seems to be holding it's own with

all the escalation going on in the ME today. Sad commentary in a way. War, death and destruction have become a common occurence now.

http://quotes.ino.com/chart/?s=NYBOT_DXY0&v=s

Last trade 90.44 Change -0.18 (-0.20%)

Open 90.85 Previous Close 90.62

High 90.91 Low 90.36

[54anickel]

32. Closing numbers

Dow 10,478.16 +33.43 (+0.32%)
Nasdaq 2,032.53 -4.24 (-0.21%)
S&P 500 1,138.15 +2.62 (+0.23%)
10-yr Bond 4.404% -0.029
30-yr Bond 5.210% -0.013

NYSE Volume 1,517,599,000
Nasdaq Volume 1,916,777,000

Close: It was a very mixed day, with no conclusive action...stocks opened higher after yesterday's declines, supported by yet another day of strong earnings reports...at 10:00 ET, the market got a boost from a strong gain in the April Consumer Confidence index and in March Existing Home Sales...the Dow was up as much as 92 points in the early afternoon...then, the indices broke down, led by the Nasdaq and weakness in semiconductor stocks...the market simply did not have the followthrough to hold the early gains, and the day ended mixed...the choppy trends of recent months continue...
before the open Verizon (VZ 37.51 -0.23) and DuPont (DD 44.52 -0.47) both reported better than expected earnings, but neither got a boost...oil stocks got a boost late in the day when Fed Chairman Greenspan said that energy prices are likely to remain high, and crude oil bounced up...there are still plenty of earnings reports due later this week, and GDP data is due Thursday morning...volume was moderate, and advancers were about even with declining issues overall...the 10-year note continued its recent stabilization, adding 7/32 in price to yield 4.41%...NYSE Adv/Dec 1787/1509, Nasdaq Adv/Dec 1574/1616



3:30PM: Indices are showing a bit of bounce late in the day, but after losing the earlier substantial gains, current levels will be considered disappointing...only the Dow has a net gain for yesterday and today combined...still, the action is generally lackluster and not all that concerning either...volume has picked up a touch, but the sideways chart patterns have not been disrupted...NYSE Adv/Dec 1782/1500, Nasdaq Adv/Dec 1513/1653

3:00PM: Stock indices have broken down suddenly...traders are mostly ascribing it to technical considerations...the S&P and Dow failed to show followthrough after breaking through yesterday's highs and the Nasdaq was even weaker on the charts...there is nothing specific hitting the wires that would otherwise account for the sell-off...bonds are up after some sort of explosion in Damascus over an hour ago...NYSE Adv/Dec 1899/1363, Nasdaq Adv/Dec 1521/1625