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The Nasdaq is relying on biotechnology stocks for its 6-point gain, but drug stock Merck is keeping the Dow in negative territory by 26 points. Caterpillar, Home Depot, and 3M are also hurting the Dow, but Phillip Morris and Procter and Gamble are trying to minimize losses.

Nasdaq-100 Daily Chart

Biotechs stocks would have the Nasdaq-100 tracking stock (QQQ) testing resistance if it wasn't for the likes of Check Point, Seibel Systems, eBay, and Brocade which are all down over $1. So instead, the Qs are having trouble taking out yesterday's high. At least it will be two up days in a row if the Qs can hold these levels, and perhaps set up a test of resistance at $39 before the week ends. We also have a little support level developing at $36.54. If Siebel and Check Point continue to perform the way they are today, the Qs may need it.

Siebel Systems and Check Point Daily Charts

Prudential started Siebel's (SEBL) 5.62% decline by saying that consensus estimates are too high, and likely to come down. That puts the stock below support at $23. If we got back 1999 and throw in a psychological level, perhaps Siebel can find some support at $20. Checkpoint (CHKP) isn't fairing any better today, down 6.69%. That shatters any hope of Check Point being able to rally back of support at $35. Going back to 1999 again, there might be some support around $30.

Jeffrey Canavan
Assistant Analyst

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