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The major indexes have been relatively range-bound in the first half of today's trade after a brief spat of bullishness crept into the major indexes from the Commerce Departments report on January wholesale inventories showed a 0.2% decline, which was slightly better than the 0.2% gain economists had forecasted.

While the Dow Industrials (INDU) 7,596 +0.37%, which currently holds a 28-point gain has seen a 100-point range after pegging a low at its WEEKLY S1 of 7,541, and a session high of 7,642.

Sector action has been mixed and has the broader S&P 500 Index (SPX.X) 808 +0.08% now holding a 1-point gain, after falling to a session low of 802.71, which would only show close correlation with DAILY S1 of 799.70 from our DAILY pivot analysis, but my impression is that it was the Dow Industrials ability to hold the 7,540 level, which keeps the S&P 500 and S&P 100 (OEX.X) 410.48 +0.20 holding near unchanged levels.

As I write, bearishness builds in the Airline Index (XAL.X) 26.15 -9.35% as it now tests its 52-week low dating back to October. Component Delta Airlines (NYSE:DAL) $6.98 -19% provides today's catalyst for the move lower in the sector after the company warned that it sees negative cash flows for its current March quarter, blaming soft traffic and bookings due to concerns over potential military action in Iraq, which then may have had consumers delaying any type of domestic flight plans based on fears of "terrorist" retaliation in the U.S., should the U.S. look to invade Iraq.

Upside sector action is limited with the Disk Drive Index (DDX.X) 71.54 +1.34% being the only sector on my screen showing a gain of greater than 1%. Shares of component Iomega (NASDAQ:IOM) $10.34 +4.02% leads component gainers after a recent triple-top buy signal was triggered on IOM's point and figure chart. While the triple-top buy signal hints of bullishness, bulls should look for a break of bearish resistance trend at $10.50 to be cleared for further upside potential. The longer-term 200-day SMA of $10.27 has also been a point of resistance in the past two weeks of trade.

After a dip to its WEEKLY S2 level of support, the S&P Banks Index (BIX.X) 262.11 -0.07% have recovered from their session lows of 258.94. I've seen no sector news today to explain the early morning weakness, but most likely would attribute this morning's low trade to yesterday's St. Louis Fed President Poole's thoughts on Fannie Mae (NYSE:FNM) $59.90 +1.64% and Freddie Mac (NYSE:FRE) $51.90 +2.16% in the mortgage financing sector.

While the morning's trade in equities has been mixed, this is what has also been found in this morning's Treasury bond market. After setting a new multi-decade low in YIELD, the 10-year Treasury YIELD ($TNX.X) 3.577% has risen from its lows of 3.549%, with the March 10-year futures contract (ty03h) $117'235 -0.06% now lower by 2/32 after it set a contract high of $117'29 earlier this morning.

Shares of Cisco Systems (NASDAQ:CSCO) $13.09 +0.69% are today's most actively traded stock in the markets. For a third day, shares of CSCO hover below their longer-term 200-day SMA of $13.36 and technology traders would most likely associate the 200-day SMA with tech investor psychology at this point. On Friday, shares of CSCO fell below their longer-term 200-day SMA after UK-based Dimensional Data missed earnings and fell 20% in overseas trade. Cisco was said to be a supplier to Dimensional Data.

Jeff Bailey

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