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Still unchanged

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While traders have seen some intraday volatility, the major indexes remain pegged near their unchanged levels.

Some of the late morning bullishness is starting to fade as the CBOE Internet Index (INX.X) 96.89 -3.23% never quite filled to the upside its morning gap lower, and now hugs intra-day support at 96.50. I consider this group of stocks more indicative of a an equity bull's aggressiveness, and today's action is rather "neutral" to "bearish" in my view. I would think an aggressive bull would be looking for some type of short-term recouping of this week's 30-point loss (-17% for the week), but we haven't really seen much of an attempt by more aggressive sector bulls to get the ball rolling

Earlier, we noted just two sectors with losses greater than 1%, but now see Software (GSO.X) -2%, Internet (INX.X) -2.86%, Networking (NWX.X) -1.38%, Fiber Optic (FOP.X) -1.18%, Insurance (IUX.X) -2.26% showing losses greater than 1%.

On the upside, Airlines (XAL.X) +2.81% hold top billing. In play here is the thought that UAL's (NYSE:UAL) $0.94 -7% anticipated filing for bankruptcy may have new ticketed passengers looking to the competition as an alternative, simply to avoid any potential cancellation of UAL flights should the company further look to reduce costs by cutting back on some routes. While I'm not an industry analyst, I'm based in Denver and note that Frontier Airlines (NASDAQ:FRNT) $6.36 +5.85%, which is a lower discount fair competitor to UAL here in Denver is finding some upside price action, though volume is average for the stock at 168K shares traded, which comes a day after yesterday spike in volume of 325K shares.

There are a couple of stocks where rumor of "takeover" speculation is creating some upside price action. Earlier today, IBM announced it was buying Rational Software and this may have merger-related analysts looking in other areas for synergies from potential mergers.

Shares of TiVo Inc. (NASDAQ:TIVO) $5.69 +2.69% saw a spike in volume and price action at approximately 01:30 this afternoon on trading floor rumor that Sony Corp. (NYSE:SNE) $43.37 +0.68% may make a bid for the company. Matching time and price decline in SNE appear to have some traders thinking the merger rumor is in play.

Shares of beleaguered PC maker Gateway (NYSE:GTW) $3.59 +4.97% have pulled back form their earlier highs of $3.80 after it was rumored that the company could be taken private soon. This has been a recurring rumor of late, and today's talk is that private equity firm Silver Lake Partners could be a bidder.

Despite some of today's headlines, market volume is just about average with NYSE volume just pushing over the 1.1 billion share mark. NASDAQ trading is slightly heavier as is the norm with the more actively traded NASDAQ stocks with volume just now reaching the 1.4 billion mark.

Breadth on the NYSE is positive with advancers leading decliner by an 18 to 13 margin, while NASDAQ breadth is amazingly neutral with 1,631 gainer and 1,639 decliners and 5 stocks unchanged.

New highs versus new lows shows there's still some bullishness to be found as the NYSE has 26 stocks trading new highs versus 15 stocks at new lows, while NASDAQ has 35 stocks trading new 52- week highs versus 24 stocks at new lows.

Jeff Bailey

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