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Jeff Bailey : 4/29/2005 11:42:15 PM

After a 6% decline in volume to an average of 1.83 billion shares per day on the NASDAQ in March, volume fell 1% to an average of 1.81 billion shares traded per day in April. In April of 2004, NASDAQ volume averaged 1.86 billion shares per day.

Jeff Bailey : 4/29/2005 11:39:38 PM

After a 15% jump in volume to an average of 1.77 billion shares per day on the NYSE in March, volume was up 16% to average 2.06 billion shares per day in April. In April 2004, NYSE volume averaged 1.46 billion shares per day.

OI Technical Staff : 4/29/2005 9:59:59 PM

The Market Monitor has been archived. You may view it and any previous days here: Link

Disclaimer: Stocks discussed in the Market Monitor are for educational purposes only and any analysis is not meant to imply a recommendation for or against that stock. The analysts in this forum as on any other website are prohibited by the SEC from giving any specific advice to ANY individual trader. All information posted is for ALL readers and is not meant to be directed to any individual. Our analysts cannot answer any email questions regarding any specific stock. Please do not ask and please do not take offense if requests are denied.

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Marc Eckelberry : 4/29/2005 8:11:28 PM

LU has a great footprint in wireless and all the good news has come from wireless, including chips. LU is not NT. Much better company and it will be a $4 stock again.

Jeff Bailey : 4/29/2005 8:03:43 PM

Pivot Matrix with new MONTHLY levels at this Link

Jeff Bailey : 4/29/2005 6:29:03 PM

Sell it James! .... NT $2.49 is a "sold to you," but LU $2.43 is a "buy?"

Jeff Bailey : 4/29/2005 6:20:03 PM

Closing Internals at this Link

Jeff Bailey : 4/29/2005 6:04:03 PM

Closing U.S. Market Watch at this Link ... BIG disparity between gold (the commodity) and gold equities exists. This has usually been VERY bearish for the commodity itself, as something usually gives, and it has been the commodity following the stocks. If you're a U.S. tax payer, be cognizant of the tax rules regarding the StreetTracks Gold Trust (GLD), which is taxed as a collectible.

Jeff Bailey : 4/29/2005 5:47:44 PM

Beetle's Balanced Benchmark found at this Link to show various asset classes performance since 03/31/05 reblance. June Crude Oil (cl05m) was added not as an investment asset class, but as an important commodity for benchmarking against.

Jeff Bailey : 4/29/2005 5:33:13 PM

April Trade Blotter separated by bear/bull closed out trades at this Link and bar chart of S&P 500 Index (SPX.X) Link from 01/27/05 start date. I could probably note other damage to BULLISH side from ALTI and CMGI even when using position size limits to try and reduce risk.

Jeff Bailey : 4/29/2005 5:09:38 PM

Monthly Trade Blotter of CLOSED trades found at this Link where I couldn't quite recover from the 1/2 bullish position loss in Maverick Tube (MVK) $29.09.

Jeff Bailey : 4/29/2005 4:50:18 PM

Mark ... per your 04:23:37 reply, that makes some sense (low/moderate reliability) based on today's oil trade. Looks like it best to wait for confirmation to the upside at a minimum.

Mark Davis : 4/29/2005 4:44:57 PM

ES came one step closer to a potential showdown at the 1170 corral today... Link
I have to keep coming back to this chart to remind myself we are BELOW the uptrend line from the October 2002 lows for the first time since October 2002, we are BELOW the neckline of the confirmed H&S pattern on the daily chart that points to ES 1100, we are BELOW the downtrend line from the March highs, yada yada yada. The only thing bothering me about being short is that the chart is SO obvious to anyone with even remedial chart reading skills that too many shorts may show up for the party.

Jeff Bailey : 4/29/2005 4:43:28 PM

Current OPEN MM Profiles at this Link

Mark Davis : 4/29/2005 4:23:37 PM

Jeff per your 04:00:33, it looked like a hammer to me also Link
Unfortunately that candle pattern is of low/moderate reliability

Jeff Bailey : 4/29/2005 4:04:16 PM

QQQQ goes out at $34.98 +0.66% ....

Jeff Bailey : 4/29/2005 4:05:25 PM

Let's see ... if I were bullish on oil into today's session, then maybe it would have been the smart thing to do to wait and see if June Oil futures "confirmed" to the upside of Thursday's high before entering a long position.

Jeff Bailey : 4/29/2005 4:00:33 PM

June Crude Oil futures (cl05m) daily interval chart with bullishly fitted 38.2% retracement at this Link with my observation of "hammer" from yesterday. Again... I'm not a Japanese candle sticker

Linda Piazza : 4/29/2005 3:59:43 PM

As the day ends, this chart shows that the OEX sprang off the midline support again, thrusting up, but that it's soon going to slam into resistance at the top of that channel, which should be lining up somewhere between the 200-sma and -ema Monday morning: Link There's opportunity for an upside breakout, but also the possibility for another rollover.

Jonathan Levinson : 4/29/2005 3:59:30 PM

QQQQ's sharp pop off has the daily, 30 min and 60 min cycles in synchronous upphases that have plenty of room to run before reaching overbought territory. The doji reversal on the daily chart matches that on the TNX and suggests further bullishness on Monday morning, supported by the high volume reversal. A break above 35.15 would make this into a full-blown key reversal day, but as the TNX failed to reach it, so does QQQQ look like it will too. Bears need a break of 34.80 to turn the 30 min cycle upphase, but so far, today's break of the daily cycle low was brief and reversed intraday. While the action has been very difficult to predict of late, the cycles and intraday action combined with high volume suggest strength on Monday. If the bulls lose 34.80 however, that prospect will dim considerably.

Jeff Bailey : 4/29/2005 3:54:30 PM

Elan Corp. (ELN) $5.57 +18.76% ... sells entire 13% stae in Iomed Inc. (IOX) $2.12 -0.46% according to amended Schedule 13D filed today. ELN sold 854,291 share in open market transactions on March 31 for $1.70 per share.

Jeff Bailey : 4/29/2005 3:52:15 PM

Hammer's ... Hmmm... I'm not overly confident. June Crude Oil (cl05m) $49.72 -3.95% looked like it had a "hammer" yesterday.

Linda Piazza : 4/29/2005 3:50:19 PM

The SPX is now inching above its 200-sma.

Linda Piazza : 4/29/2005 3:49:57 PM

My 3:47 post should have read that next resistance lies up to the 200-ema. Of course, resistance can be expected at the -sma, too, but it was the -ema that was supporting the OEX from the middle of March through to the middle of April, and so we should expect that it might be resistance now. I've corrected that original post.

Jeff Bailey : 4/29/2005 3:45:25 PM

Linda ... if the QQQQ should close above $35.00, would this be a "hammer?" Link QQQQ $35.02 +0.77% ... candle stick chart at this Link

Linda Piazza : 4/29/2005 3:47:23 PM

If you've participated in this rally today, congratulations, but now ask yourself if you want to hold over the weekend. The OEX is still below its 200-sma and -ema. I certainly wouldn't rule out a renewed assault on those averages, but I wouldn't venture to guess how such a test would turn out. Those who have thought they knew over the last more-than-month period have often had their heads handed to them on a platter by the next day's actions. If you sell today, you risk not participating in a gap-higher move Monday morning, but it's going to take some gap to gap the OEX safely above that next resistance, up to the 200-ema, Monday morning.

Linda Piazza : 4/29/2005 3:31:10 PM

The Dow's 15-minute Keltner chart shows the Dow aproaching resistance at 10,196, with support trying to gather beneath it near 10,145.50 and then again from 10,116-10,125.49.

Jeff Bailey : 4/29/2005 3:29:23 PM

General Motors (GM) $26.66 -0.33% Link ... CEO gets $4.66 million in salary bonus for 2004.

Jonathan Levinson : 4/29/2005 3:26:46 PM

QQQQ is holding 34.90 despite an overdue short cycle downphase in place for the past half hour. Volume breadth is negative, with 1.78 declining shares for each advancing on the NYSE and Nasdaq. So far, the short cycle downphase is looking corrective within the 30 and 60 min channel upphases, but that could change if price breaks below the 7200 tick SMA now at 34.87. Link

Linda Piazza : 4/29/2005 3:20:09 PM

Now the OEX is trying to push above its descending trendline off Tuesday's high. A new high of the day should push it above that trendline.

Linda Piazza : 4/29/2005 3:12:58 PM

The SOX has broken out above a descending trendline drawn from Tuesday's high. The SOX sometimes overruns targets, but if there's not a quick SOX reversal below 383.40 or so, rather than just a test of support, then the SOX may be suggesting that other indices can also break out over their descending trendlines off Tuesday's high.

Jeff Bailey : 4/29/2005 3:10:53 PM

03:00 Internals at this Link

Linda Piazza : 4/29/2005 3:11:06 PM

Potential evening-star pattern on the OEX's 15-minute chart. If that's confirmed at the close of this 15-minute period, those hoping for more upside want to see any pullback find support from 548.84-549.23.

What about those of you hoping for a rollover? The OEX is currently right at the descending trendline off Tuesday's high, and it's forming that potential evening-star formation beneath that resistance. Stronger Keltner resistance extends up to 552.35. It sure looks like the right place to expect a rollover, but I just don't trust that it will roll over. It may, but I've had this gut feeling all day that the OEX would attempt a rally, and it has, and I just have this gut feeling that trying to pick a top here isn't the right thing to do heading into a Friday close. It may turn out to have been the right thing to do, and I'll be sorry that I didn't suggest readers capitalize on a short-term move into the close if that does happen, but I just don't trust it.

Jonathan Levinson : 4/29/2005 3:03:45 PM

Ten year bonds recovered slightly off their lows with the cash market now closed, TNX up 2.8 bps at 4.201%. Closing chart at this Link

Jeff Bailey : 4/29/2005 3:02:39 PM

03:00 Market Watch at this Link ... sharp decline in oil fuels broader equity rebound.

Linda Piazza : 4/29/2005 3:00:07 PM

The SOX deals with mid-channel resistance, from 386.75-387.97 on the 15-minute Keltner chart. This looks strong enough to at least temporarily stall the SOX, if not make it pull back. Support is gathering near 383.01-383.51, and those hoping for more gains would like to see that support hold on 15-minute closes on any pullback.

Jonathan Levinson : 4/29/2005 2:55:08 PM

At the across-the-board highs, QQQQ touched 35.06 before pulling back. First support is at 34.94, with the 7200 tick SMA up to 34.80. Currently, the 30 and 60 min cycles as well as the daily are all in upphases, making this prime time for bulls. A break above 35.16 would qualify this as a key upside reversal day, with a lower low and higher high.

Linda Piazza : 4/29/2005 2:52:43 PM

Although a bit of a late-comer to the party, the RUT has finally pressed above the Keltner line that's been holding back many of the indices. It's still within a descending regression channel in which it's been traveling since Tuesday morning, with the automatically drawn version of that channel showing upper channel resistance now at about 581.40, a level of possibly strong Keltner resistance. A descending trendline drawn by hand shows resistance at the RUT's current 578.15 level, up through about 580, depending on whether all shadows are included or whether it's a best-fit trendline.

Jeff Bailey : 4/29/2005 2:51:18 PM

No buy/sell premiums during this rebound.

Jeff Bailey : 4/29/2005 2:50:46 PM

TRIN 0.83 -60.66% ... below its "neutral" 1.0

Jeff Bailey : 4/29/2005 2:50:16 PM

QQQQ $35.02 +0.77% ... comes up to challenge DAILY R1.

Jonathan Levinson : 4/29/2005 2:42:47 PM

QQQQ 100 tick chart at this Link , testing the channel top. Neither the TRIN nor TRINQ are indicating anything beyond neutral breadth at .89 and .67 respectively. The short cycle oscillators are very toppy and looking for a downphase- a move below 34.73 would do it, if the bears have enough gas in the tank.

Jonathan Levinson : 4/29/2005 2:35:15 PM

Session highs for ES and YM, QQQQ 10 cents away at 34.91. Nymex crude closed on a session low of 49.70, -2.075 or -4.01%.

Linda Piazza : 4/29/2005 2:31:30 PM

The BIX also charges higher, but it has an ominous potential H&S at the top of its climb since April 21. It's now approaching the right-shoulder level for that H&S formation. I think I remember several times over the last year when the BIX ran right over a potential right-shoulder area, so I'm not saying that the BIX will definitely confirm this formation. I'm just saying that those hoping for a continued market bounce today would rather not see that formation sitting there. Watch it.

Linda Piazza : 4/29/2005 2:28:57 PM

Although the TRAN showed relative Keltner-style strength to the other indices earlier, it now lags them. Hasn't yet broken above a Keltner line that other indices have. Sigh. Can't these leading indices all lead the same direction for once?

Jonathan Levinson : 4/29/2005 2:26:04 PM

QQQQ 100 tick chart update at this Link , breaking the prior high and reaching for upper channel resistance at 34.85. 7200 tick SMA support has risen to 34.67 within the 30 and 60 min channel upphases.

Linda Piazza : 4/29/2005 2:25:05 PM

The SOX is trying to lead the pack higher.

Linda Piazza : 4/29/2005 2:20:42 PM

Dialing down to a three-minute Keltner chart for the OEX shows strong support gathering near 547.82. Trouble is that that resistance near 548.90 looks about equally as strong.

Jonathan Levinson : 4/29/2005 2:18:25 PM

Nymex crude -1.7 or 3.28% to a new low at 50.075.

Jeff Bailey : 4/29/2005 2:09:33 PM

Bullish day trade exit alert ... selling long Bema Gold (BGO) at the bid of $2.08

Jonathan Levinson : 4/29/2005 2:08:05 PM

QQQQ bounced from the 7200 tick SMA and is now back to 34.70. Bulls need ta break above the prior 34.75 high to challenge the rising 30 and 60 min channel tops. The short cycle oscillators are mixed after an abortive downphase on the current bounce. Link

Linda Piazza : 4/29/2005 2:04:15 PM

The OEX again challenges the Keltner line that's been providing resistance since yesterday morning, with that line currently at 548.59 and the OEX currently at 548.56. Those hoping for more upside would like to see a break through that Keltner line and a 15-minute close above it.

Jonathan Levinson : 4/29/2005 2:03:55 PM

Session low for CAD and euro futures here with TNX up 3.8 bps to 4.211% now.

Jeff Bailey : 4/29/2005 2:02:03 PM

02:00 Market Watch at this Link

Jeff Bailey : 4/29/2005 1:59:55 PM

U.S. Dollar Index (dx00y) 84.42 +0.08% (30-min. delayed) ... "busting a move" back above DAILY Pivot.

Jonathan Levinson : 4/29/2005 1:59:53 PM

Session low for 10-yr bonds, with TNX up 3.3 bps to 4.206%. Above 4.245%, it would become a key outside reversal candle on the daily chart.

Jeff Bailey : 4/29/2005 1:56:20 PM

Google (GOOG) $219.18 -0.14% Link ... had a question yesterday regarding my analysis of GOOG's technicals. Analysis ... very bullish longer-term, but under current market conditions and various bullish % reading, I think MARKET as well as bulls that are long will be more protective of gains. With stock so close to its Point and Figure chart's bullish vertical count of $228, I'd follow with a protective stop at $212.

Jonathan Levinson : 4/29/2005 1:55:02 PM

Crude oil is diving, down to 50.30 now, -1.475.

Jonathan Levinson : 4/29/2005 1:49:15 PM

Session low for Nymex crude here, -1.05 at 50.725.

Jonathan Levinson : 4/29/2005 1:48:57 PM

Ten year bonds continue to weaken, with the TNX printing a bullish hammer now, +1.9 bps at 4.192%. The udated daily chart at this Link shows 4.2% back in play as resistance.

Linda Piazza : 4/29/2005 1:48:50 PM

The OEX tentatively held to first Keltner support through the close on the just-completed 15-minute candle. With a potential-but-still-right-shoulderless inverse H&S at the bottom of the OEX's chart, I wouldn't be surprised to see a deeper pullback to a right-shoulder area, but so far, that first support holds.

Linda Piazza : 4/29/2005 1:41:30 PM

As expected (see my 1:19 post), the OEX pulled back from the Keltner resistance that has been stopping it since yesterday morning. It's not testing the first level of support, and those hoping for a continued bounce would like to see that support hold on a 15-minute close. The support is at a Keltner line currently at 547.52, with the OEX currently at 547.62. Resistance is at 548.62-549.19 and then again at 550.45.

Jeff Bailey : 4/29/2005 1:37:32 PM

Current OPEN MM Profiles found at this Link (see recap of CLOSED trades at 11:41:48)

Jonathan Levinson : 4/29/2005 1:36:50 PM

QQQQ is now testing 34.65 from above. The 7200 tick SMA is rising, up to 34.60 now at second support. The short cycle upphase reached oversold territory and is now ticking down- time for the 30 min cycle bulls to pick up the ball.

Jeff Bailey : 4/29/2005 1:31:35 PM

Bullish day trade raise stop alert ... on Bema Gold (BGO) $2.08 x $2.09 ... to $2.07

Linda Piazza : 4/29/2005 1:26:39 PM

The 120-minute OEX chart that I've been displaying today is still showing the OEX finding support at the midline of its rising regression channel.

Linda Piazza : 4/29/2005 1:19:04 PM

Like many other indices, the OEX currently tests a Keltner resistance line that has held it back since Yesterday morning, with that line at 548.66. Those hoping for more upside would like to see any pullback, if one occurs at this resistance level, find support on 15-minute closes above a Keltner line currently at 547.48.

Jonathan Levinson : 4/29/2005 1:16:10 PM

Advancing volume now leads declining volume 1.34:1 on the NYSE and 1.03:1 on the Nasdaq with the TRIN and TRINQ both at 1.01. Breadth has improved, but remains mostly balanced.

Jeff Bailey : 4/29/2005 1:15:54 PM

01:00 Internals at this Link

Jonathan Levinson : 4/29/2005 1:12:15 PM

100 tick chart of QQQQ updated at this Link with the 30 and 60 min channel tops being tested.

Linda Piazza : 4/29/2005 1:11:47 PM

The Keltner-style bullish divergence on the Dow did hold (see my 11:54 post) and the Dow is rising to test the Keltner resistance mentioned (although it's drifted down to 10,116.74-10,124.91) before it touched the support level again. The Keltner resistance now being tested has held the Dow back on rises since yesterday morning, so it could produce a pullback. If so, those hoping for more upside want to see the Dow close 15-minute periods above the Keltner line currently at 10,090.38.

Jonathan Levinson : 4/29/2005 1:08:11 PM

Ten year bonds have gone negative, TNX now up .9 bps at 4.18%. 4.2% is key upside resistance from here.

Jonathan Levinson : 4/29/2005 1:06:15 PM

The slow walk down the 7200 tick SMA has resulted in the 30 min and 60 min channels overlapping almost perfectly, with support now 34.38 and resistance 34.70. The short cycle is in an upphase halfway completed, while the 30 min channel is just starting to turn up, the 60 min channel flat but showing an uptick. The current move has now broken the previous high at 34.65, and if bulls can hold the gain, then the channel tops will begin to shift higher.

Jeff Bailey : 4/29/2005 1:02:14 PM

01:00 Market Watch at this Link

Jonathan Levinson : 4/29/2005 12:59:21 PM

Bonds have weakened, pulling back toward unchanged with TNX down to a 0.2 bp loss at 4.171%.

Jonathan Levinson : 4/29/2005 12:58:28 PM

QQQQ is testing 34.65 resistance now, with TRINQ dropping to .98. 100 tick chart at this Link

Linda Piazza : 4/29/2005 12:56:58 PM

The TRAN is still holding above Keltner support, but doesn't appear to be leading this bounce, but rather tagging along.

Linda Piazza : 4/29/2005 12:56:31 PM

The SOX is breaking above the Keltner resistance, and those hoping for a bounce want to see the SOX now hold the 379-380 area on pullbacks.

Tab Gilles : 4/29/2005 12:54:49 PM

Newmont Mining (NEM) Yesterday's chart... Link today's.... Link

Tab Gilles : 4/29/2005 12:52:16 PM

$RUT- Russell 2000 Small Cap Link

Linda Piazza : 4/29/2005 12:47:31 PM

SOX still testing first Keltner resistance. Without a strong buy program, that resistance looks strong enough to nudge the SOX back again. If so, those hoping for a bounce want to see a higher low or an equal low with bullish divergence.

Linda Piazza : 4/29/2005 12:41:38 PM

So far, the Dow has not again touched Keltner support on its 15-minute Keltner channel, tentatively continuing the Keltner-style bullish divergence. See my 11:54 post.

Jonathan Levinson : 4/29/2005 12:41:36 PM

Upside resistance is at 34.60, then confluence at 34.65, then the combined 30 and 60 min channels at 34.70: Link

Jeff Bailey : 4/29/2005 12:40:52 PM

Clear Channel (CCU) $32.23 +0.75% ... gapped higher on earnings at the open to $34.00, but has now backfilled that gap.

Jonathan Levinson : 4/29/2005 12:40:09 PM

QQQQ is breaking above 7200 tick SMA resistance here, testing the declining short cycle channel top at 34.55.

Jonathan Levinson : 4/29/2005 12:39:39 PM

Ten year note yields continue to hold down at a 2.1 bp loss at 4.152%. The 10-day stochastic is on the verge of trending, still holding its uptick from earlier this week. Daily chart updated at this Link

Linda Piazza : 4/29/2005 12:37:02 PM

The SOX is rising to test first Keltner resistance, from 379.01-380.63.

Jeff Bailey : 4/29/2005 12:38:40 PM

U.S. Dollar Index (dx00y) 84.13 -0.26% (30-min. delay) ... intra-day action has recent little pullback low firming at DAILY S2 at this point. StreetTracks Gold (GLD) $43.52 +1.20% ... did see a pretty good volume spike of 570,900 at average price of $43.50 after morning high of $43.61. Bema Gold (BGO) $2.09 +1.45% ... $2.08 (92,600) x $2.09 (90,600)

Tab Gilles : 4/29/2005 12:32:32 PM

Big move up on $VXN. Link Link Link

Linda Piazza : 4/29/2005 12:31:05 PM

The TRAN is dropping to test a breakdown level on its Keltner 15-minute chart, to see if it holds as support instead. That level is near 3376, with the TRAN currently at 3377.28. Curiously, the SOX is not dropping this 15-minute period along with some other indices.

Jeff Bailey : 4/29/2005 12:27:18 PM

Swing Trade bearish put alert ... for SAP Aktiengesell (SAP) $39.09 Link and two (2) of the SAP Sep. $40 Puts (SAP-UH) at the offer of $2.75.

Linda Piazza : 4/29/2005 12:20:56 PM

The SOX still tries to steady. Resistance still looks firm, although it may have softened slightly from earlier. Those hoping to see a SOX bounce want to see the move be impulsive and to carry the SOX through that next Keltner resistance from 379.04-580.79, and then to see it sustain values above that previous resistance. Hasn't happened yet, obviously.

Jonathan Levinson : 4/29/2005 12:20:11 PM

Breadth has worsened slightly, with the TRIN up to 1.15 and the TRINQ 1.21. QQQQ is hanging at 34.48 within the ongoing 30 and 60 min channel downphases, not plunging but edging lower. The test remains whether the bulls can bounce it from a higher low or not, followed by a break of 34.65. Volume is very heavy, with 70.9M QQQQ shares traded so far. Currently, declining 30 and 60 min channel support are at 34.31.

Linda Piazza : 4/29/2005 12:16:47 PM

The OEX's three-minute chart shows that the OEX has just dropped above an ascending trendline off the 10:48 low, but is trying to bounce right back to that ascending trendline. Those hoping for a bounce today want to see it quickly regain that trendline, currently at about 546.53. Doesn't look as if that's happening.

Jeff Bailey : 4/29/2005 12:08:47 PM

12:00 Internals at this Link

Linda Piazza : 4/29/2005 12:07:56 PM

Here's a look again at that descending regression channel for the OEX, shown here with a 120-minute chart, with the OEX's effort to maintain midline support apparent on this chart: Link Don't know if the effort will ultimately be successful or not, but the effort is being made.

Linda Piazza : 4/29/2005 12:04:10 PM

The OEX still rattles around while support tries to flatten and firm (Sounds like an exercise program, doesn't it?) just above 545.30.

Jeff Bailey : 4/29/2005 12:02:31 PM

12:00 Market Watch can be found at this Link

Jonathan Levinson : 4/29/2005 12:00:04 PM

QQQQ 100 tick chart update at this Link with price walking down the declining 7200 tick SMA.

Jonathan Levinson : 4/29/2005 11:57:56 AM

New lows for the CAD futures even as gold, silver and the miners hold their ground. I believe that the recent weakness in the CAD is due to political uncertainty arising from the Liberal Party's sponsorship scandal and the prospect of an early election. Whatever the cause, CAD is back below .80 at .7963 here, a welcome move for the export-driven Cdn economy.

Linda Piazza : 4/29/2005 11:54:21 AM

Here's a picture of what the Dow's 15-minute Keltner chart shows: The Dow is currently hanging in mid-air between Keltner support down near 10,050 and resistance at 10,089. It's been showing some tentative bullish divergences with each successive test of the Keltner support, though. If that's to continue--no guarantee it will--then the Dow won't touch that Keltner support again or will only briefly tap it before rising to test the 10,124-10,130.00 zone. The Dow still looks weak based on this chart, still traveling down, but there's that tiny bit of hope for those who want to see the Dow bounce today.

Jonathan Levinson : 4/29/2005 11:52:24 AM

Ten year notes are trading as if there were an auction today, but there isn't, just holding steady in positive territory with TNX -2.3 bps at 4.15%. Crude oil has recovered to a .475 loss at 51.30, off a low of 50.95.

Linda Piazza : 4/29/2005 11:44:13 AM

On the OEX's 15-minute chart, the chart pattern at the bottom of the OEX's recent decline has taken on a sort of diamond shape. Diamonds are more often found at market tops, I believe, than at bottoms, but are sometimes reversal signals at bottoms, too, even if more rarely. They're indicative of irrational trading, emotion-based trading, so unpredictable. So what else is new? If today's trading hasn't been unpredictable and choppy, I don't know what has. I'd be wary of entering the fray today.

Jeff Bailey : 4/29/2005 11:42:56 AM

Pacholder High Yield (PHF) $8.86 -0.78% ... trades without $0.075 per share monthly dividend today.

Jeff Bailey : 4/29/2005 11:41:48 AM

Current OPEN MM Profiles at this Link CLOSED trades update alert ... Altair (ALTI) long was stopped at $2.60. Sold 1/2 of the SanDisk SNDK July $27.5 Puts (SWQ-SY) at $4.20 bid. Stopped on the QQQQ long from yesterday at $34.70.

Linda Piazza : 4/29/2005 11:39:21 AM

The RLX fell out of its recent consolidation pattern today, dropping below the previous April low and falling all the way to 390.87. The RLX is attempting to bounce now, but doing so in a shape that looks, so far, like a bear flag on the 15-minute chart. I think the RLX's importance is sometimes overlooked, and anyone wanting to see the non-tech indices bounce today would want to see the RLX bounce, too. Strongest resistance looks to be nearby resistance at 395.50-396.00, with the RLX at 393.98 as I type.

Jonathan Levinson : 4/29/2005 11:36:46 AM

QQQQ 100 tick update at this Link with price trading both sides of the 7200 tick SMA. Bulls need a bounce from a higher low above the 34.35 low- bearsw need to hold the prior high at 34.65.

Linda Piazza : 4/29/2005 11:31:53 AM

No strong bounce on the SOX, but it's steadying while Keltner support tries to firm beneath it. Resistance near 380.17-380.65 (sinking lower) still looks relatively firm, but resistance above that thins a bit. Still looks like an iffy situation.

Linda Piazza : 4/29/2005 11:30:25 AM

The OEX clings to first Keltner support during the just-completed 15-minute period.

Tab Gilles : 4/29/2005 11:29:56 AM

EVV/$FVX Is the Fed about done on raising rates? If so then EVV should rally. Link

Jonathan Levinson : 4/29/2005 11:25:50 AM

Volume breadth is almost neutral, 1.02 advancing NYSE shares for each declining, 1.56 declining Nasdaq shares for each advancing. The TRINQ and TRIN are both neutral at .94 and 1.02 respectively.

Linda Piazza : 4/29/2005 11:23:42 AM

The SOX is trying to steady just above 378, with Keltner support trying to firm underneath that level. It's also oh-so-tentative just yet, though, and not trustworthy.

Linda Piazza : 4/29/2005 11:23:00 AM

Tall upper shadows again on the OEX's 15-minute candles. The OEX is attempting to hold at the 547.29 Keltner support, but slipping a little beneath it as I type. It's a difficult day to say the least.

Jeff Bailey : 4/29/2005 11:19:28 AM

Still see bottom softening in the NH/NL indications.

Jeff Bailey : 4/29/2005 11:13:22 AM

11:00 Internals at this Link Yesterday's Internals at this Link

Jonathan Levinson : 4/29/2005 11:11:06 AM

Ten year notes have weakened a bit, TNX up to a 1.7 bp loss at 4.156%.

Linda Piazza : 4/29/2005 11:10:32 AM

OEX pushing above that first Keltner resistance. SOX attempting to form a morning-star pattern on the 15-minute chart, but facing strong resistance just over 381. TRAN still finding support at the mid-sized Keltner channel, showing strength with regard to those other on a Keltner basis.

Jeff Bailey : 4/29/2005 11:09:55 AM

Buy Program Premium ... SPX 1,146.29, DIA $101.16, QQQQ $34.62

Jonathan Levinson : 4/29/2005 11:09:00 AM

QQQQ 100 tick chart at this Link with declining 7200 tick SMA resistance down to 34.60 and the short cycle oscillators trying to turn up. A retest of that level would be a standard "return to the scene of the crime" bounce, but to break and hold it for approx. 10 minutes would stall the 30 min cycle downphase and set up the drop as a possible bull trap.

Linda Piazza : 4/29/2005 11:06:00 AM

The OEX so far cannot push above the next Keltner resistance, at 547.11, with the OEX at 546.62 as I type.

Tab Gilles : 4/29/2005 11:04:13 AM

Yesterday- I posted at 5:08PM this chart, looking for more downside on the $COMPQ. Link

On the SPX I'm looking for 1125 as a downside target. Link

$MID S&P Mid Cap Link

Jonathan Levinson : 4/29/2005 11:03:54 AM

Session low for Nymex crude oil here at 50.95.

Jeff Bailey : 4/29/2005 11:03:16 AM

11:00 Market Watch at this Link

Linda Piazza : 4/29/2005 11:01:46 AM

The OEX did erase the breakdown signal it had just created. The SOX has attempted a bounce from the day's low, but it's not convincing just yet. The TRAN bounced from Keltner support. Attempts are being made, but whether they'll be any more successful than previous ones remains to be seen.

Linda Piazza : 4/29/2005 10:58:05 AM

The OEX is trying to erase the breakdown signal it just created. It needs a 15-minute close above the Keltner line currently at 545.89 to do so, but it also needs a quick confirming close above the Keltner line currently at 547.17.

Jonathan Levinson : 4/29/2005 10:55:54 AM

Gold, copper and cocoa are leading the CRB this morning, up .53 at 304.93. Gold is holding a 4.30 gain at 436.90, HUI +1.13% and XAU +1.23%. Crude oil is down .50 at 51.275.

Linda Piazza : 4/29/2005 10:55:11 AM

What's keeping me still worried about the possibility of a measured-distribution type of bounce is the TRAN's action. It's far from showing the same Keltner weakness as some other indices. It's not at bottom Keltner channel support on the 15-minute channel--it hasn't even created a breakdown signal to test that bottom channel support. It's holding to the support of the middle-sized Keltner channel. So, although the TRAN is far from strong today, it's stronger by comparison to some other indices on a Keltner-chart basis, and the TRAN sometimes leads the Dow, SPX and OEX the way the SOX sometimes leads the tech-related indices. I could be wrong, wrong, wrong today, and I'm far from wanting to go long, but I'm fearful of a movement against bearish positions, too.

Jeff Bailey : 4/29/2005 10:53:51 AM

Bearish day trade close out 1/2 position alert ... closing out one (1) of the two (2) SanDisk SNDK July $27.50 puts (SWQ-SY) at the bid of $4.20. SNDK $23.81 -2.65% here.

Jonathan Levinson : 4/29/2005 10:50:09 AM

QQQQ 100 tick update at this Link with price now below 30 and 60 min channel support. Barring the strongest of trending moves, the bulls should be trying to push back here. Today, however, it could well be the former.

Linda Piazza : 4/29/2005 10:49:54 AM

We're on the edge of the cliff in many indices here. Here's the OEX with respect to midline support on its descending regression channel, showing the danger that the OEX could now fall through the bottom half of that channel: Link If a bounce is coming, it better come quickly.

Jeff Bailey : 4/29/2005 11:09:18 AM

Bullish day trade raise stop alert for Bema Gold (BGO) $2.07 +0.48% to breakeven ($2.05).

Jonathan Levinson : 4/29/2005 10:48:12 AM

TNX lost the battle for 4.2% resistance, currently down 2.7 bps at 4.146%. Daily chart at this Link

Linda Piazza : 4/29/2005 10:47:57 AM

Tentative new Keltner breakdown signal on the OEX on the last 15-minute close. It's tentative as yet, but without a strong bounce this 15-minute period, it sets a downside target of 543.14.

Linda Piazza : 4/29/2005 10:46:26 AM

The SOX is now at Keltner support on the 15-minute channel. Do or die time. Strong resistance building near 381.60.

Jeff Bailey : 4/29/2005 10:43:50 AM

Bullish Swing Trade Stop alert for Altair Nanotechnologies (ALTI) $2.60 -1.88%

Jonathan Levinson : 4/29/2005 10:43:43 AM

QQQQ 100 tick update, 30 min channel support down to 34.49, with 60 min support creeping lower. Link

Linda Piazza : 4/29/2005 10:42:31 AM

The SOX did hit 378.49, as Keltners had suggested it would. (See my 10:25 post.) Keltner support has now drifted down to 378.25, but doesn't look particularly strong yet, while resistance is firming up near 381.76-382.56. Without a strong drive higher, slashing through that resistance, the SOX looks to be in trouble.

Linda Piazza : 4/29/2005 10:38:55 AM

The OEX is now back at the midline of the descending regression channel in which it's traded since early March. Make-or-break time for the OEX. It needs to bounce soon--or risk falling through the bottom half of the descending regression channel. It's testing Keltner support as I type, but that Keltner support isn't convincing. Next downside target is 543.16 if the OEX produces a 15-minute close beneath the Keltner line currently at 546.07.

Today, I'm just as suspicious of the downside as I am of the upside, though.

Linda Piazza : 4/29/2005 10:36:32 AM

The OEX tests yesterday's low. This is why I don't like countertrend trades. They're just so unpredictable.

Jeff Bailey : 4/29/2005 10:38:05 AM

Sellers look to be leaning on the nq05m at that 1,413.50 level after being broken to the downside. That looks to be equivalent to QQQQ $34.75.

Jonathan Levinson : 4/29/2005 10:32:28 AM

The rapidfire whipsaws have scrambled the 30 and 60 min oscillators to the point where they'll say anything we want them to. The keltner channels point south, however, with the 60 min just rolling over now to join the 30. The short cycle oscillators are in a downphase that has become oversold. All this confirms the fact that 34.60 is critical support now in play. Bulls need a break back above 34.75, followed by 34.85 to get above the 7200 tick SMA. Link

Linda Piazza : 4/29/2005 10:28:13 AM

Here's how the OEX's 15-minute Keltner charts set up right now. The OEX is headed down to retest yesterday's low and Keltner support at 545.71. That support slopes down steeply, though, and it's possible that the OEX could slide right down it, eventually hitting the next Keltner support, currently at 543.26. While that downside target appears possible, I keep expecting the OEX to form up into a measured distribution pattern of some type, such as a bear flag and rise a bit further. Don't know why I keep expecting that, so don't let my bias get in your way today.

Linda Piazza : 4/29/2005 10:25:44 AM

The SOX might not adhere to those Keltner channels as well as some other indices, but Keltner resistance just did hold again, and the SOX looks vulnerable to 378.49.

Linda Piazza : 4/29/2005 10:19:21 AM

This morning, the SOX violated yesterday's low, falling to 380.14 before attempting the current bounce. The SOX has created a breakdown signal on the 15-minute Keltner charts with a downside target of 378.58, but the SOX doesn't tend to adhere to these charts' S/R levels as well as some other indices do. The SOX needs to bounce, hard and soon, to avoid a cascading fall as it has moved below January and April lows.

Jane Fox : 4/29/2005 10:19:11 AM

The CME has confirmed that it experienced an issue this morning affecting major S&P indices such as $INX, $OEX, $IUX, $IDX, etc. The CME is working to maintain accurate data delivery, and we are working to repair any holes or anomalies that exist in the history.

Jeff Bailey : 4/29/2005 10:17:17 AM

10:00 Internals at this Link

Linda Piazza : 4/29/2005 10:16:29 AM

Looks as if the OEX's ugly three-candle pattern is going to confirm an evening-star pattern on the 15-minute chart. Time to look at potential support. The first place is yesterday's low, of course, with that low at 546.10. Be aware of the possibility that the OEX could be trying to form a bear flag and might still rise higher. I don't know why my gut is telling me that might happen since the OEX rolled over at yesterday's support, right where it might be expected to roll over, and Keltner lines turn down, but . . .oops, they're trying to steady as I type, so maybe my gut knew they were going to do that.

Jonathan Levinson : 4/29/2005 10:15:25 AM

QQQQ 100 tick chart at this Link with 30 min channel support down to 34.63, 60 min channel support holding at 34.60.

Linda Piazza : 4/29/2005 10:12:37 AM

Ugly looking 15-minute candle pattern forming now on the OEX, with the first three candles of the day looking like a rough evening-star pattern in the making. The OEX needs to manage some upside during the rest of this 15-minute period to stop that reversal pattern from forming.

Jonathan Levinson : 4/29/2005 10:09:38 AM

Nymex crude is down .725 here at 51.05, a new session low.

Jeff Bailey : 4/29/2005 10:08:34 AM

That sell program premium didn't look that big but it smashed the Qs pretty hard.

Jeff Bailey : 4/29/2005 10:07:52 AM

Bullish swing trade stop alert ... for the QQQQ $34.70

Jonathan Levinson : 4/29/2005 10:07:47 AM

I blinked and the bounce reversed, QQQQ back to the lower 30 min channel support and breaking it as I type. The 60 min bottom is at 34.60, last week's low and the "cliff's edge" for the daily cycle.

Linda Piazza : 4/29/2005 10:07:15 AM

I edited my 10:05 post about the TRAN. The TRAN is not within that continuation-form H&S, but rather rises to retest the neckline of the already-confirmed formation. That neckline is currently at about 3450, with the TRAN having tested the neckline yesterday and fallen away from it.

Jeff Bailey : 4/29/2005 10:04:58 AM

Sell Program Premium ... SPX 1,146.93, DIA $101.13, QQQQ $34.84

Linda Piazza : 4/29/2005 10:04:17 AM

Upper shadows continue on the OEX's 15-minute chart, with the OEX still struggling with that 548.80-ish area that supported it through much of yesterday.

Linda Piazza : 4/29/2005 10:05:27 AM

The TRAN has edged just above 3400, at 3406.80 as I type, and it's retesting the neckline of a continuation-form H&S, below the 200-sma and -ema. The TRAN is at a risky place, too.

Jeff Bailey : 4/29/2005 10:02:27 AM

10:00 Market Watch at this Link

Jonathan Levinson : 4/29/2005 10:02:07 AM

QQQQ bouncing sharply from the 34.84 low, currently up to 34.96. Link

Linda Piazza : 4/29/2005 10:01:43 AM

The SOX is not bouncing along with other indices, but again tests/edges slightly beneath the January and April lows. The SOX needs to bounce, too, and quickly, to avoid cascading beneath that former support. As I type, it's attempting a move higher.

Jonathan Levinson : 4/29/2005 10:00:35 AM

Chicago PMI 65.6 vs. 62.5 exp. Number released early.

Jonathan Levinson : 4/29/2005 10:00:03 AM




Jonathan Levinson : 4/29/2005 9:59:13 AM

June gold tagged a high of 438.30, not yet reflected on my chart. Above 439, the daily cycle upphase will get a new lease on life in an upside trending move after yesterday's test of 432. Link

Jonathan Levinson : 4/29/2005 9:56:39 AM

A 4.75B overnight repo from the Fed's open market desk results in a net drain of 2.25B today.

Jeff Bailey : 4/29/2005 9:55:55 AM

VIX.X 15.82 -6.16% ... DAILY Pivot Levels ... 14.51, 15.61, Piv= 16.17, 17.27, 17.83.

Jonathan Levinson : 4/29/2005 9:55:48 AM

QQQQ edges lower toward 7200 tick SMA support at 34.83 Link with a short cycle downphase starting off. This is confluence support from yesterday at 2:30, former resistance. A break below the SMA will confirm the short cycle downphase and set up a potential whipsaw in the 30 min cycle if the bears hold it down for approx. 10 minutes.

Linda Piazza : 4/29/2005 9:54:35 AM

Jane has just informed me that I've been posting on the Futures side. Sorry about that, and thanks, Jane, for letting me know. The way the posting page is set up, we all occasionally slip to the other side to test the waters there. Smile.

The OEX did close above the Keltner line currently at 548.04, but it left a long upper shadow behind, too. Next Keltner resistance is at about 549.85, but the OEX is having difficulty with that 548.80 level that was providing a floor most of yesterday before the floor gave way.

Jeff Bailey : 4/29/2005 9:51:26 AM

QQQQ $34.87 +0.35% ... pulls into DAILY Pivot here. Bulls want to see buyers push back above $35.03 and DAILY R1 to get a bullish Friday close of $35.30.

Jeff Bailey : 4/29/2005 9:49:08 AM

TRIN 0.85

Jonathan Levinson : 4/29/2005 9:47:24 AM

13 minutes until the Chicago PMI, est. 62.5. Also, the Fed has 7B in overnight repos to address in its 10AM announcement.

Jeff Bailey : 4/29/2005 9:45:54 AM

SanDisk (SNDK) $24.34 -0.53% ... jumped to 200-day SMA ($24.73) early, but finds early resistance there.

Jeff Bailey : 4/29/2005 9:44:50 AM

Disk Drive Index (DDX.X) 99.82 -1.02% ... sector loser early.

Jeff Bailey : 4/29/2005 9:43:55 AM

Bullish day trade long alert ... for Bema Gold (BGO) $2.05 here, stop $2.02, target $2.15.

Jeff Bailey : 4/29/2005 9:42:55 AM

StreetTracks Gold (GLD) $43.40 +0.93% ... just above its DAILY R2 of $43.37. WEEKLY Pivot early support at $43.14, WEEKLY R1 at $43.76.

Jeff Bailey : 4/29/2005 9:41:09 AM

U.S. Dollar Index (dx00y) 84.05 -0.35% ... DAILY S2 here.

Jonathan Levinson : 4/29/2005 9:41:07 AM

June gold is holding a 2 point gain at 434.60, off a higher low of 432.90. HUI and XAU are both positive, a rare sight as of late, with HUI +1.09% at 177.90 and XAU +1.16% at 83.07. The move in gold would be part of the topping process in the daily cycle, which is overbought, but until it closes below 432, the downphase will be on hold.

Jeff Bailey : 4/29/2005 9:36:15 AM

Solectron (SLR) $3.24 -0.3% ... plans to cut 3,500 jobs in $100 million restructuring.

Jeff Bailey : 4/29/2005 9:27:38 AM

Amylin Pharmaceuticals (AMLN) $18.18 ... sharply lower at $17.00 and #5 on pre-market most active after FDA OKs Lilly-Amylin drug (exenatide) for type 2 diabetes.

Jonathan Levinson : 4/29/2005 9:17:57 AM

QQQQ's bounce stopped at the steeply rising 30 min cycle top, below 35.05 resistance from yesterday afternoon, but it's sticking just below the high. All the sellers from 2:30PM on are currently underwater at the 34.98 print. This has been sufficient to turn the 30 and 60 min cycle oscillators up, and the 7200 tick SMA support is way below at 34.79. If price can hold above 34.85 support past the open, the upper channel tops will shift upward. 35.05 and 35.10-.13 are key upside resistance, but the overdue 30 and 60 min cycle upphases should break them easily so long as they don't abort almost immediately.

Jeff Bailey : 4/29/2005 9:17:20 AM

Oracle (ORCL) $11.62 ... up 7 cents at $11.69.

Jeff Bailey : 4/29/2005 9:16:46 AM

Siebel Systems (SEBL) $8.59 ... #4 on pre-market most active list (behind SUNW, QQQQ, SPY) and trading up at $9.06 on chatter that Oracle (ORCL) $11.62 is in talks to buy the company in a deal that could be valued at up to $5 billion.

Linda Piazza : 4/29/2005 9:12:27 AM

Thursday, the OEX rolled down through its descending regression channel, ending the day again at potential midline support: Link The daily Keltner chart does show a downside target of 542.30 having been set as of yesterday's close. At the close of the day, the OEX's 15-minute chart showed a downside target of 543.84, but these end-of-day last-minute breakdown or upside breakout moves prove somewhat suspicious as targets could be getting overrun. That downside target will not be erased until and unless the OEX can maintain 15-minute closes above a Keltner line currently at 547.87, something that futures suggest could happen as soon as the first 15-minute close. A zoom up first thing this morning is going to scatter Keltner lines so that the pre-market lineup may have little relevance. Currently, Keltner resistance thins above that 547.87 level, but exists from 549.56-550.13 and then again at 551.59. A descending trendline off Tuesday's early-morning high lies at about 552.70, and if the OEX is to keep its current rounding-over bowl look, then resistance will be found below that line. Although I believe that any upward move has the possibility of being explosive after such downward pressure is released, I still believe such moves might be countertrend, and so I won't be suggesting upside trades today. I will be watching at that 552.70 level, and, if the OEX gets through that, I'll be watching the 200-sma and-ema's and the top of the descending regression channel in which the OEX has traded, with the top of that channel at about 555.45 currently. Lots of potential resistance in that 553-557 level.

Jeff Bailey : 4/29/2005 9:07:51 AM

Sun Microsystems (SUNW) $3.44 ... jumping to $4.00 and atop this morning's pre-market most active list on reports that the company's CEO Scott McNealy might look to take the company private with help from Silver Lake Partners. Sources close to Silver Lake Partners and McNealy say an LBO offer could fetch between $5 and $5.50 per share.

Jonathan Levinson : 4/29/2005 8:41:12 AM

Ten year bond yields (TNX) are testing the 4.2% level from below. The daily print, less than 20 minutes old, is in the middle of yesterday's sell candle. A break above 4.2% would target next resistance at 4.24%, above which the daily cycle buy signal should revive. Link

Jonathan Levinson : 4/29/2005 8:34:36 AM

Equities love the news, QQQQ +.27 to a session high of 35.02, with bonds down, TNX up 2.1 bps at 4.194%.

Jonathan Levinson : 4/29/2005 8:33:14 AM









Jonathan Levinson : 4/29/2005 8:32:16 AM


Personal income 0.5% vs. 0.4% est.

Personal spending 0.6% vs. 0.4% est.

Jonathan Levinson : 4/29/2005 7:28:33 AM

Equities are up, ES trading 1149.75, NQ 1420.5, YM 10123 and QQQQ +.18 at 34.93. Gold is up 2.20 to 434.80, silver +.057 to 6.959, ten year notes -3/32 at 111 19/32 and crude oil -.125 at 51.65.

We await the 8:30 releases of the Employment Cost Index, est. 1.0%, personal income and personal spending, est. .4% for each, then at 9:45, Michigan Sentiment, est. 88.9 and at 10AM, Chicago PMI, est. 62.5.

Linda Piazza : 4/29/2005 5:52:23 AM

Good morning. The Nikkei was closed for a holiday last night, but other Asian markets declined. Big news in Asian markets included speculation in the Chinese Securities Journal that Chinese officials will soon widen the trading band for the yuan, with only the timing still questionable. With the Japanese markets closed, speculators have had free reign during the overnight session to drive Asian currencies higher against the dollar. European markets have been mixed, paring earlier losses. Our futures climbed straight into the European open, pulling back as European markets showed some weakness at their open, but still remaining strongly positive. As of 5:41 EST, gold was up $2.10, and crude, up $.16 to $51.93. More detail about Asian and European markets follows in succeeding paragraphs.

The Nikkei was closed for a holiday Friday, with its Golden Week holiday continuing Tuesday, Wednesday and Thursday of next week. Most other Asian markets declined, including all of the ones usually covered in this report. The Taiwan Weighted fell 0.41%, and South Korea's Kospi declined 0.70%. Singapore's Straits Times lost 0.44%, and Hong Kong's Hang Seng declined 0.37%. China's Shanghai Composite fell 0.85%.

European markets have pared early weakness amid mixed economic numbers.. March's French unemployment increased to 10.2% from the previous month's 10.1%. One article tagged that rate at the highest in five years. INSEE's quarterly industrial survey fell to a -2 reading from the previous quarter's +5. The capital goods component plunged to a +4 from the previous quarter's +16. Consumer confidence climbed slightly to a -24 reading from the previous -25.

Germany's March retail sales beat expectations for a decline, instead remaining flat month over month and against the year-ago level. The German government is to release its revised 2005 economic forecast, and is widely rumored to be trimming its economic growth forecast to 1% from the previous 1.6%, bringing it more in line with estimates from think tanks.

In earliest European trading, car manufacturers and Bayer tempered declines. VW saw improving profits although sales eased and deliveries to the U.S. dropped 9.7%. The company was encouraged by sales of certain models. Bayer posted better-than-expected profits, with net income for the first quarter rising 55.6%. Deutsche Bank was giving back some of the gains made yesterday after its better-than-expected results.

In other stock-specific news, Deutsche Bank upgraded Alcatel to a buy rating, with the telecommunications equipment maker climbing as a result. Citigroup Smith Barney upgraded GlaxoSmithKline to a buy rating, but the company's stock slipped, giving back some of Thursday's gains. Morgan Stanley upgraded French IT group Cap Gemini SA to an overweight rating.

As of 5:36 EST, the FTSE 100 had gained 13.00 points or 0.27%, to trade at 4,803.20. The CAC 40 was lower by 4.07 points or 0.10%, at 3,907.38. The DAX was higher by 6.86 points or 0.16%, at 4,184.96.

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