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Still some sellers at Dow 11,000.

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Earlier today, the Dow Industrials tested the 11,000 level and much like Punxsutawney Phil, saw its shadow and decided to dip back below ground and perhaps settle in for a longer winter. For stocks this may mean we have to wait awhile for a "huge rally" and should remain traders, with a longer-term bullish outlook.

Dow Industrial Chart - 60-minute interval.

Within the past hour, the Dow Industrials have dipped back into negative territory after trading at a recent monthly high. Still not enough buyer to aggressively buy this index to a close over 11,000.

Networking Index Chart - 60-minute interval.

I removed all my upward and downward trends from the NWX.X and overlaid a retracement bracket on this index from the recent lows to highs. Looks like the MARKET is taking a neutral stance on this index with a pullback to the 50% retracement level near 764. Subscribers might want to do the same for many technology stocks before the close.

Jeff Bailey
Staff Analyst

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