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Nasdaq trying to rally

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After hovering just below the zero line for most of the day, the Nasdaq is trying to mount a small rally to finish in positive territory. The Internet Index (INX.X) was up 1% early in the day, but is now up 6%. The Networking Index (NWX.X) and Disk Drive Index (DDX.X), both up over 3%, have also jumped in to help out. The Semiconductor Index (SOX.X) is off its lows, but still the big loser of the day, down 1.47%.

Nasdaq-100 60-Minute Chart

This morning we pointed out some actions points on the Nasdaq- 100, and for most of the day the Nasdaq-100 was trying to break below the 50-period moving average. Now the QQQ keeps banging its head against a short downtrend on the 60-minute chart that has been in place since 4/20/01. If it keeps banging hard enough, it might be able to break through in the last half hour of trading. A close above the trend line would be a small victory for the day, and open up a possible test of the upper end of the range at $49.44.

Dow Jones Industrials 60-Minute Chart

If the Dow can manage to close above 10,900, it would not only be a close above the 3/9/01 high, but it would also break a downtrend dating back to 1/14/00. That would be a little more significant that our trend on the Nasdaq-100's 60-minute chart.

Jeffrey Canavan Assistant Analyst
www.PremierMarkets.com

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