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Jeff Bailey : 6/3/2005 1:28:02 AM

Well, I've got to get some sleep. This stuff just fascinates me though.

Jeff Bailey : 6/3/2005 1:34:35 AM

Keep an eye on this one tomorrow. Might be a flyer. Not sure though. Introgen Therapeutics (INGN) $7.13 -1.51% Link ... Here's some "patent win" news just crossing the wires. Link . Out of curiousity, looked at short interest. Get this .... as of May 13, NASDAQ reported short interest of 5.34 million shares. Average daily volume running just 119,994, and that has days to cover at 44.57. Now... see that volume spike and price rise on 12/09/04? That looks to have come after the company reported positive data on its cancer drug (for breast cancer) Advexin. Hmmm... this is intersting. Link . Stock has been pinned under $8.00 hasn't it? The 21-day SMA (pretty close to 20 consecutive days) is at $7.40. I found this because I'm trying to find out if these guys (INGN) have some type of convertible out. Often times, a stock with a high short interest like this will have issued some tye of convertible, the hedge fund(s) that take it (usually with a low yield on it) will short the heck out of the common because they've got the convertible to protect them. I wrote an article on this a couple of years ago in the "Ask the Analyst" column when ADI did a big convertible in January 2001. Good Gravy! Has it been that long? You won't believe this... I'm pulling up a chart of ADI on my QCharts and sure enough... I've got a red line marking the spot at $57. I think thats it anyway. 01/17/01.

Jeff Bailey : 6/3/2005 12:53:39 AM

Jakarta Composite ($JKSE) 1,095.17 is up 3.7 points, or 0.34%.

Jeff Bailey : 6/3/2005 12:51:28 AM

Applied Materials (AMAT) $16.86 +1.44% Link ... Company saying it expects its application to form a holding company in China to get final approval within several weeks. A limited number of companies have been granted holding company status in China, which allows them to act as local Chinese companies with greater flexibility in structuring corporate operations, providing a wider scope of services and forming joint ventures. China has said it expects a six-fold increase in the semiconductor industry by 2010, with projections suggesting the chip manufacturing sector will be three times its current size by then. AMAT will be able to set up units, acquire Chinese enterprises and research and develop new products in China after establishing a holding company with an investment of $30 million.

Jeff Bailey : 6/3/2005 12:32:43 AM

EMC doesn't look 1/2 bad. Link

Jeff Bailey : 6/3/2005 12:29:00 AM

Disk storage ... IDC's Worldwide Disk Storage Systems Tracker saying factory revenue in the worldwide external disk storage systems market grew 6.7% year over year to $3.8 billion in Q1 of 2005, marking the eighth consecutive quarter of positive overall growth. Capacity continues to outpace overall revenue growth with external disk storage systems petabytes growing 58.6% year over year to 409 petabytes for the first quarter. Breadth of growth shows that demand for disk storage is on the rise, although seasonal variations caused Q1 revenues to be less that Q4 revenues. "Storage spending is clearly trending upward as organizations strive to stay ahead of their information storage demands," said Brad Nisbet, program manager in IDC's Storage Systems Program. EMC Corp. (EMC) $14.30 Link maintained its lead in the external disk storage systems market with 21.4% revenue share, followed by Hewlett Packard (HPQ) $22.68 Link with 17.7% and IBM (IBM) $77.35 Link with 11.5% revenue share. Hitachi (HIT) $60.56 Link edged out Dell (DELL) $40.60 Link for 4th position with 9.1% revenue share while Dell ended the quarter with 7.7%. Among these top 5 suppliers, Dell and EMC posted the strongest year-over-year revenue growth during Q1 2005, with 29.2% and 12.2% growth, respectively.

Tab Gilles : 6/3/2005 12:10:27 AM

On my 6/2 12:12 AM post I took a look at the similarities and differences between the $SOX and SMH. My speculation on the $SOX was that the 440 on the upper end of the channel would be tested but with a bearish divergence setup over the next several days. I was partial correct in that speculative outlook. The move today was strong in both the $SOX and SMH. Below I have several charts I've annotated and my outlooks for them. Overall I'm bullish on tech and have been so since late April as my $NASI/$NAHL chart and $BPCOMPQ/$BPNDX indicators have me on the long side. Link Link Link

SMH Link Link Link

INTC Link

KLAC Link

Jeff Bailey : 6/3/2005 12:07:18 AM

Earthquake update ... DJ- struck off the northern coast of Sumatra Island in Indonesia. Epicenter was about 290 kilometers southwest of Medan in western Sumatra. Link

Jeff Bailey : 6/3/2005 12:03:35 AM

e-mini NASDAQ (nq05m) down 0.50 at 1,571.00

Jeff Bailey : 6/3/2005 12:02:58 AM

e-mini S&P (es05m) down 0.25 at 1,205.00.

Jeff Bailey : 6/3/2005 12:02:28 AM

July Crude (cl05n) is off $0.08 at $53.55.

Jeff Bailey : 6/3/2005 12:01:18 AM

Jakarta Composite ($JKSE) 1,090.70 down 0.76, or -0.07%. Link

Jeff Bailey : 6/2/2005 11:57:43 PM

Global ... Earthquaqe of 5.8 magnitude off Indonesia coast.

Jeff Bailey : 6/2/2005 11:34:16 PM

Program Trading Levels for Friday ... HL Camp & Company has their computers set for program buying at $+1.84 and set for program selling at $-0.73.

OI Technical Staff : 6/2/2005 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.

Results posted in the Market Monitor are hypothetical and OIN does not claim that any reader achieved these exact results. Due to the lag time between research, writing, posting, uploading, reading and execution there will be differences between the actual signal given and the fill achieved by the reader. Fills may be better or worse but in most cases they will be different. The writers will make every effort to give advance notice of intended signals and indicate potential price targets. Your individual results may vary depending on your activity level and aggressiveness. This forum is intended as an education service only. Trading involves risk and should not be attempted by anyone not ready to accept this risk. By acting on any signal in this forum you agree and personally accept this risk.

Jeff Bailey : 6/2/2005 8:40:04 PM

Semiconductor HOLDRs (SMH) Link .... After achieving their bearish vertical count of $98 in September, today's trade at $35.00 now gets this security back on a reversing higher buy signal, and a triple top buy signal at that! Good test for bulls here at trend, but demand looks to be outstripping supply and bears will be getting more aggressive with the covering on pullbacks, if not on strength. Here's a quick look at Dorsey/Wright and Associates SEMI Bullish % chart. Link The recent bullish % observations for September (9) and now early June (6) is what most would call BULLISH DIVERGENCE. If this were football, Bears would appear to have scored a touchdown, but the extra point attempt looks like it is going to get blocked! Bear should be saying... "Houston, we've got a problem."

Jeff Bailey : 6/2/2005 7:30:29 PM

Hot Stocks in Business Week. PEET Link , ALK Link , ASEI Link (I don't know about this one. Don't need X-ray vision to see that bearish triangle.)

Jeff Bailey : 6/2/2005 7:20:44 PM

Internet Initiative Japan (IIJI) $8.84 +24.50 Link ... back from the dead. And how!

Jeff Bailey : 6/2/2005 7:11:26 PM

Global .... DJ- Germany .... German economic advisor Peter Bofinger calling for higher wages and more inflation in Germany. "Germany needs a higher growth rate for wages of 2.5%-3%," which would increase domestic demand and increase inflation. "A higher inflation rate would result in a lower real interest rate, which in turn guarantees companies better investment conditions," said Bofinger.

Jeff Bailey : 6/2/2005 7:05:36 PM

Good Gravy! That's a bearish signal reversed... Link

Jeff Bailey : 6/2/2005 7:04:44 PM

Pivot Matrix for tomorrow at this Link

Jeff Bailey : 6/2/2005 6:54:48 PM

Lehman Bros. (LEH) $93.11 +0.50% ... could have a blowout couple of quarters. BIG bond house.

Jeff Bailey : 6/2/2005 6:51:04 PM

Amazing the amount of news today regarding bond swaps, new issue, etc.

Jeff Bailey : 6/2/2005 5:57:26 PM

Wynn Resorts (WYNN) $53.40 +6.90% ... building gains to $53.61 in extended session. Might be enough to keep QQQQ building gains.

Jeff Bailey : 6/2/2005 5:45:34 PM

Toll Brothers (TOL) $96.70 +1.68% ... ticking $96.98 ... saying it will repay $222.5M First Huntingdon loan. Will redeem $100M in 8% Sr. Sub notes. Will take Q3 charge of about $0.03 per share.

Jeff Bailey : 6/2/2005 5:47:31 PM

QQQQ $38.73 in extended session. Jonathan... you see what's going on?

Jeff Bailey : 6/2/2005 5:38:38 PM

Gold bugs got whacked from 12:00 to the close. Just seeing that.

Jeff Bailey : 6/2/2005 5:31:07 PM

Closing Market Watch found at this Link

Jeff Bailey : 6/2/2005 5:16:50 PM

Closing Internals found at this Link

Jeff Bailey : 6/2/2005 4:26:54 PM

Current OPEN MM Profiles found at this Link ... Today's Activity ... No trades were profiled today.

Linda Piazza : 6/2/2005 4:05:07 PM

The OEX ended the day at 569.92, just under 570, still within the consolidation formation on its daily chart.

Linda Piazza : 6/2/2005 3:50:57 PM

OEX just under 570 as I type.

Jeff Bailey : 6/2/2005 3:49:40 PM

July Crude Oil (cl05n settled down $0.97, or -1.78% at $53.63 on the NYMEX in Thursday's trade.

Linda Piazza : 6/2/2005 3:44:50 PM

Will it or won't it? The OEX is at 570. Without something major happening in the last few minutes, though, I'm not sure how much I'll trust a close just over 570 this afternoon, ahead of tomorrow's numbers.

Jeff Bailey : 6/2/2005 3:45:21 PM

FedEx (FDX) $91.24 +1.16% Link ...

Jeff Bailey : 6/2/2005 3:44:57 PM

United Parcel (UPS) $73.77 +0.16% Link ... resolve that pilot union issue and you're gone!

Jeff Bailey : 6/2/2005 3:42:40 PM

Dow Transport ($TRAN) alert 3,651 +0.49% ... Link gets the triple-top buy signal.

Jonathan Levinson : 6/2/2005 3:37:52 PM

QQQQ's short cycle indicators are hanging in overbought territory, with the wavelet showing a bearish divergence. Under normal circumstances, this would be good for a decline, but the market feels far from normal. Link

Jonathan Levinson : 6/2/2005 3:29:22 PM

QQQQ volume continues to decline as price rises: Link

Linda Piazza : 6/2/2005 3:26:30 PM

It's going to perhaps be touch-and-go as to whether the OEX will close above 570 or under it. Unless something big happens into the close, however, I'll consider the day a wash, a choppy day that I expected to see.

Jonathan Levinson : 6/2/2005 3:25:16 PM

Session low for Nymex July crude, reopened for the evening session, -.20 at 53.425.

Jonathan Levinson : 6/2/2005 3:21:39 PM

Ten year note yields finished -1.7 bps at 3.89%. Daily chart updated at this Link

Linda Piazza : 6/2/2005 3:13:50 PM

OEX 570 struck again, but now there's a rising wedge to watch on the OEX's intraday chart. These should be bearish, but often aren't. An OEX close above 570 would be a change, but tomorrow morning's numbers could change it all, so don't get married to any conclusion due to a last-minute market move today, either.

Jonathan Levinson : 6/2/2005 3:07:35 PM

Keene, that lines up with what I see as well. The 30 min cycle upphase should begin running out of gas toward the close, and the 60 min downphase should assert itself. If it fails, despite the toppy daily cycle, then the bulls are in control. More likely is that a lower high will be followed by a lower low and the overdue daily cycle downphase.

Jonathan Levinson : 6/2/2005 2:52:15 PM

QQQQ didn't clear 38.60, and the 60 min cycle downphase has yet to reverse. The 30 min cycle upphase has run most of its course, however, and is now approaching overbought territory. Currently, the 30 and 60 min channel tops are lined up at 38.65, and the overbought short cycle indicators are beginning to curl. 72 SMA support has advanced to 38.51.

Linda Piazza : 6/2/2005 2:45:20 PM

The BIX is looking a bit stronger now on a Keltner basis, but again this could be just part of a choppy market behavior, as the BIX is settling into an equilibrium position with respect to its Keltner channels, too. Right now, support near 365 and then again near 364 looks slightly stronger than nearby resistance, but I'm just not going to trust much of anything today.

Linda Piazza : 6/2/2005 2:40:26 PM

Okay, so now is the OEX reforming into a rising wedge (a bearish formation)? You see the problem of microanalyzing? Glad I came into today thinking there would be some choppy behavior ahead of tomorrow's numbers.

Jonathan Levinson : 6/2/2005 2:39:19 PM

QQQQ dropping sharply from below yesterday's high: Link . 72 SMA support is at 38.50, and bears need to get back below it to restore a bearish bias to the intraday cycles.

Jonathan Levinson : 6/2/2005 2:34:40 PM

Nymex July crude finished -.975 at 53.625, off a spike low of 53.20: Link

Linda Piazza : 6/2/2005 2:32:03 PM

What do you know. The OEX bumped that Keltner line it was testing just a little higher and closed right at it, rather than above it. Still just chopping around. No Keltner breakout, even up to the next channel at 570.54.

Jonathan Levinson : 6/2/2005 2:31:23 PM

Volume breadth has firmed slightly, advancing volume 1.42:1 on the NYSE and 1.57:1 on the Nasdaq, overall volume still quite light at 54.3M QQQQ shares here and combined volume 2.2B on the NYSE and Nasdaq. Upper resistance for QQQQ is at 38.63 for the 30 min channel, 38.65 for the 60.

Linda Piazza : 6/2/2005 2:30:44 PM

The BIX bounced from its 200-sma but stays within its recent consolidation pattern.

Linda Piazza : 6/2/2005 2:30:14 PM

The OEX breaks higher, testing Keltner resistance at 569.65 and likely to close this 15-minute period above it. Next Keltner resistance at 570.56.

Linda Piazza : 6/2/2005 2:26:02 PM

The OEX was likely just widening its triangle formation and reforming it into a more bullish looking right triangle. It's coming up now to test the top, at about 569.52, but there's 570 just above that.

Jonathan Levinson : 6/2/2005 2:24:13 PM

Session low for crude oil here at 53.775, with bonds firm, TNX -1.1 bps at 3.896%. Euro futures are up .47% at 1.2287, QQQQ back to testing the earlier session high.

Jonathan Levinson : 6/2/2005 2:17:58 PM

Nymex July crude is down .60 here at 54.00, current low 53.775. Updated 50 tick chart at this Link , today's daily pivot appearing as the neckline of a very tidy h&s formation.

Linda Piazza : 6/2/2005 2:17:50 PM

I'm seeing a potential H&S on the RUT's five-minute chart, neckline at about the previous LOD and with the RUT just below the appropriate right-shoulder level, ready to rise and negate the thing or roll down and confirm it. Or do a bit of both.

Linda Piazza : 6/2/2005 2:10:02 PM

The OEX broke below that triangle but now rises again. To retest broken support? Or just for the heck of it, to spend some more time chopping around? Not sure.

Jeff Bailey : 6/2/2005 2:09:38 PM

02:00 Internals found at this Link

Jeff Bailey : 6/2/2005 2:01:37 PM

02:00 Market Watch at this Link

Linda Piazza : 6/2/2005 1:59:36 PM

The BIX's 200-sma is at 363.84 and the LOD has been 364.08, reached just a few minutes ago. The BIX is currently at 364.30, rising to retest the flat bottom of its bearish right triangle, just violated a few minutes ago.

Jonathan Levinson : 6/2/2005 1:56:06 PM

QQQQ broke the 72 SMA and has drifted back up to test it from underneath. The market feels like it's full of helium today. Despite the barely-positive volume breadth (NYSE 1.1:1 in favor of advancing volume, 1.44:1 on the Nasdaq), the market shows an absolute unwillingness to decline.

Linda Piazza : 6/2/2005 1:55:30 PM

The SOX looks vulnerable down to 433.96-434.86. That's a fairly broad range, but that's where the Keltner lines are lining up. On a 15-minute close above a line currently at 435.73, that picture changes. On a 15-minute close below 433.96, the vulnerability is down to the mid-channel area at 431-431.41.

Jeff Bailey : 6/2/2005 1:49:35 PM

July Crude (cl05n) 5-minute interval chart at this Link ... should the h/s play out, downside objective of pattern would be $52.00.

Linda Piazza : 6/2/2005 1:45:46 PM

The OEX looks as if it's headed toward 568. That could be it, if the equilibrium position is going to be maintained, but a retest of yesterday's low isn't out of the question even so. And of course we don't know if the equilibrium position is going to be maintained. I'm not trying to avoid making a decision. This is really what the charts are showing us and what fundamentals (a tendency to nail indices before an important economic number like tomorrow's is to be released) say could happen, too. So, there's just some uncertainty and my crystal ball isn't working right now. Don't get married today to a certain belief.

Jeff Bailey : 6/2/2005 1:44:52 PM

July Crude (cl05n) $54.55 -0.09% (30-min delayed) ... bidding back with a test of WEEKLY R2 $54.56. Can be a great tendency that shorts aren't going to want to go home short over the weekend. A little h/s top forming on the 5-minute interval chart, with "right shoulder" identified here. A break much above $54.70 may bring in some further buying.

Jonathan Levinson : 6/2/2005 1:42:27 PM

QQQQ breaks back below 72 SMA support: Link . 37.45 is the bottom of confluence support, below which is the 30 min channel bottom at 38.40.

Jeff Bailey : 6/2/2005 1:42:35 PM

I have to leave for about an hour this afternoon and with markets looking somewhat lackluster at this point, I may not be able to follow a day trade.

Jeff Bailey : 6/2/2005 1:40:15 PM

Bullish day trade setup cancel alert for shares of Cienna (CIEN) $2.49 +1.63% ... to go long at $2.52.

Linda Piazza : 6/2/2005 1:33:20 PM

The BIX again tests the bottom of its bearish right triangle. The 200-sma is still waiting just below to catch the BIX if it does violate the bottom of that triangle, as it's doing as I type.

Jeff Bailey : 6/2/2005 1:32:30 PM

PETsMart (PETM) $31.87 -0.65% ... have not yet seen any retail sales figures and getting close to my bullish stop.

Linda Piazza : 6/2/2005 1:32:21 PM

The OEX's 15-minute candles are just dashes on the chart. No movement.

Linda Piazza : 6/2/2005 1:31:59 PM

For the first time today, the SOX is dropping below a Keltner line currently at 436.01, although this 15-minute period hasn't closed and the SOX could still bounce before it does. Keltner support beneath this level things and so the SOX could (emphasis on "could") be beginning the rolldown through to mid-channel support, now at 430.78-431.28 that it's been bouncing from as it climbs this week.

Jonathan Levinson : 6/2/2005 1:29:22 PM

QQQQ just printed a bad tick to 39.50. Quotetracker users can delete the print and restore their intraday chart by clicking the chart, the pressing CTRL-SHIFT-H a couple of times.

Jonathan Levinson : 6/2/2005 1:24:35 PM

The moves in gold and silver constitute a new high for the year valued in euros: Gold at this Link , silver at this Link .

Linda Piazza : 6/2/2005 1:17:33 PM

Sure looks as if the OEX is trying to keel over, but we can't necessarily trust what we're seeing today.

Jeff Bailey : 6/2/2005 1:14:10 PM

Turbochef Tech (AMEX:TCF) $13.45 +17.87 ... never heard of them.

Jeff Bailey : 6/2/2005 1:12:42 PM

01:00 Internals found at this Link

Jonathan Levinson : 6/2/2005 1:12:27 PM

Gold has risen above the descending trendline from April, on a fresh daily cycle upphase, currently +7.20 at 425. Next resistance is at 428, followed by the 432-433 confluence: Link

Linda Piazza : 6/2/2005 1:09:57 PM

So far, the OEX isn't able to push above 570 or certainly maintain it on a daily close, but the day is still younger than I'd like it to be. Smile. It's just bumping around with an equilibrium position on the Keltner charts. Next support 568.44-58.66 and then down closer to 568.

Jonathan Levinson : 6/2/2005 1:05:56 PM

My office DSL blipped out just before the drop, and my 3 min chart shows a gap. The drop is challenging rising triangle/risng wedge support here, and the short cycle indicators are on the verge of rolling over. Below 37.45 confluence, the benefit of the doubt shifts back to the intraday bears. Link

Jeff Bailey : 6/2/2005 1:03:31 PM

01:00 Market Watch at this Link

Linda Piazza : 6/2/2005 12:59:28 PM

The BIX turns lower again, back toward the bottom of the possible bearish right triangle.

Jeff Bailey : 6/2/2005 12:58:14 PM

Bullish day trade long setup alert ... for shares of Ciena (CIEN) $2.50 +2.04% ... go long on a trade at $2.52, stop $2.48, target $2.70 toward today's close.

Jonathan Levinson : 6/2/2005 12:54:22 PM

Nymex June crude oil is up to a .425 loss at 54.175 here, June euros holding within this morning's range at a .39% gain at 1.2277. Ten year notes continue to flutter arond unchanged.

Jeff Bailey : 6/2/2005 12:53:08 PM

Merger ... Citrix Systems (CTXS) $23.75 -6.34% said today that it was buying Silicon Valley start-up NetScaler for just over $300 million.

Jonathan Levinson : 6/2/2005 12:44:09 PM

Breadth has firmed slightly, advancing volume leading 1.35:1 on the NYSE and 1.52:1 on the Nasdaq as price continues to drift on light volume to new session highs. Ten year bonds are trading both sides of unchanged, TNX up .2 bps here at 3.909%. There are no Treasury auctions today.

Linda Piazza : 6/2/2005 12:41:04 PM

The OEX is attempting to break over the top of that triangle with the Keltner outlook having shown that support was slightly stronger than resistance most of the day. The OEX hasn't convincingly broken over the top of that resistance, though, and may be just reforming into a different shape. Nearest Keltner resistance at 569.54 and then at 570.66, on 15-minute closes.

Jeff Bailey : 6/2/2005 12:35:16 PM

July Crude (cl05n) $53.86 -1.35% ... (30-min delayed) ...

Linda Piazza : 6/2/2005 12:28:59 PM

The BIX is bouncing higher again, too, within its triangle, with its triangle looking a bit more bearish than the OEX's did. The BIX has the 200-sma just below that triangle, though, so I've never been sure we could take that bearishness too seriously.

Jeff Bailey : 6/2/2005 12:27:36 PM

Dow Transports (TRAN) 30-minute interval chart with WEEKLY Pivots and 3,650 at this Link

Linda Piazza : 6/2/2005 12:25:27 PM

OEX challenging the top of the triangle formation. OEX 570 resistance (on daily closes) just ahead, though.

Jeff Bailey : 6/2/2005 12:20:56 PM

Dow Tran components ... sorted by current Net% at this Link

Jonathan Levinson : 6/2/2005 12:19:52 PM

QQQQ continues its upward drift below what could be rising triangle resistance at 38.53. A break below 38.47 would violate the rising support and invalidate the pattern, but so far the bears have been unable to much of anything or for long despite today's low volume environment: Link

Jeff Bailey : 6/2/2005 12:16:36 PM

Transports (TRAN) 3,643 +0.25% ... WEEKLY Pivot Levels ... 3,550, 3,587, Piv= 3,618, 3,654 , 3,686.

Jeff Bailey : 6/2/2005 12:15:15 PM

Airline Index (XAL.X) 51.58 +4.41% ... session high and WEEKLY R2 here.

Jeff Bailey : 6/2/2005 12:14:25 PM

12:00 Internals found at this Link

Linda Piazza : 6/2/2005 12:09:13 PM

OEX testing the top of that triangle again. Still coiling. Keltner support still looks slightly stronger than resistance, but with the channels in equilibrium position, that may have little relevance.

Jeff Bailey : 6/2/2005 12:09:09 PM

July Crude (cl05n) $54.40 -0.36% (30-minute delayed) ... 30-minute interval chart would show a "doji" with open/close of $54.90.

Jonathan Levinson : 6/2/2005 12:05:43 PM

July crude has extended its decline to a session low here at 53.875, -.725, after hitting a high at 11AM at 55.325.

Jeff Bailey : 6/2/2005 12:02:38 PM

12:00 Market Watch at this Link

Linda Piazza : 6/2/2005 12:02:25 PM

The BIX still challenges the bottom of its possible bearish right triangle, but the 200-sma is just below and it just won't break.

Jonathan Levinson : 6/2/2005 12:01:55 PM

Volume breadth is holding lightly positive for both exchanges, advancing volume leading 1.15:1 on the NYSE and 1.47:1 on the Nasdaq. The TRINQ is down at .60, TRIN up at 1.18. Volume overall is light so far today.

Linda Piazza : 6/2/2005 11:56:45 AM

The OEX still coils. It's going to trade sideways out of that triangle, soon, if it doesn't break one direction or the other. Keltner support looks slightly stronger than resistance, but only slightly.

Jeff Bailey : 6/2/2005 11:52:32 AM

Sept. Crude (cl05u) $56.00 +0.37% ... intra-day moment of truth. 30-minute interval chart at this Link

Linda Piazza : 6/2/2005 11:51:35 AM

The BIX's pattern (following a strong decline) sure looks like a bearish right triangle. It hasn't broken down yet, though.

Jonathan Levinson : 6/2/2005 11:51:14 AM

Nymex crude down .20 here at 54.40. 50 tick chart updated at this Link

Linda Piazza : 6/2/2005 11:48:07 AM

The SOX still challenges important Keltner resistance on both the daily and 15-minute charts. It hasn't been able to create a new breakout signal on the 15-minute chart, but pushes the resistance line higher as it climbs. If it should see a 15-minute close above a Keltner line currently at 436.60 or so, it would be setting a potential upside of 438.72, but I'm still thinking that upside may be limited on the SOX.

Jeff Bailey : 6/2/2005 11:47:18 AM

TRIN 1.19 +48.75 ... somebody's selling into this strength.

Jeff Bailey : 6/2/2005 11:44:23 AM

Semiconductor Index (SOX.X) 436.14 +0.93% ... hovering after first test today of WEEKLY R1.

Jeff Bailey : 6/2/2005 11:42:35 AM

XM Satellite Radio (XMSR) $33.52 +3.01% ... takes out WEEKLY R2. Jumping above its mid-keltner on DAILY Interval bar chart.

Jeff Bailey : 6/2/2005 11:40:05 AM

CBOE Oil (OIX.X) 465.84 +0.24% ....

Jeff Bailey : 6/2/2005 11:39:35 AM

Oil Service (OSX.X) 135.80 is unchanged.

Jeff Bailey : 6/2/2005 11:38:05 AM

September Crude (cl05u) $56.50 +1.27% ... session high (30-minute delayed).

Linda Piazza : 6/2/2005 11:34:42 AM

The OEX still coils.

Linda Piazza : 6/2/2005 11:29:57 AM

The BIX hasn't broken down yet, but still hangs around near the bottom of its formation--a possible bearish right triangle.

Jeff Bailey : 6/2/2005 11:29:51 AM

Airline Index (XAL.X) 51.01 +3.23% ... breaks above yesterday's highs. Dow Tran (TRAN) 3,640.90 +0.19% ...

Jonathan Levinson : 6/2/2005 11:28:58 AM

Zooming out, QQQQ's 30 min cycle oscillators are stalled near the bottom of their range above oversold territory, while the 60 min cycle oscillators are flashing a sell signal from below overbought. This should be a perfect recipe for trendless chop, but a strong move in either direction would be enough to stall either of these early signals. A move above 38.60 or below 38.30 should provide some directional followthrough.

Jonathan Levinson : 6/2/2005 11:26:12 AM

Ten year note yields are holding in negative territory near yesterday's lows, TNX currrently -.6 bps at 3.901%: Link

Jeff Bailey : 6/2/2005 11:25:26 AM

10 Most Actives .... SUNW $3.77 -3.58%, QQQQ $38.47 +0.2%, ELN $6.66 -16.52%, INTC $27.61 +1.17%, CIEN $2.50 +2.04%, SIRI $5.97 +0.50%, SPY $120.39 -0.09%, ORCL $12.91 +0.46%, CSCO $19.69 +0.25%, MSFT $25.80 -0.03%.

Linda Piazza : 6/2/2005 11:23:22 AM

The OEX is rising again through that coiling pattern, that triangle. The triangle itself doesn't quite have a flat top, but the top doesn't descending at the same slope as the rising one ascendings, so it's somewhere between a neutral and a bullish right triangle. See what these choppy days force you to do, microanalyzing this way? The truth is that I was a "chopper" (my bias) as the day began and I still am. Wish something would change, but I'm just not so sure it will ahead of tomorrow's numbers.

Jonathan Levinson : 6/2/2005 11:20:13 AM

Back to find QQQQ testing 38.45 from below on another bounce from the 72 SMA. The short cycle indicators are chopped up in a so-far corrective upphase- but the persistence of 72 SMA support has the 30 min cycle downphase stalled. Link

Jeff Bailey : 6/2/2005 11:18:59 AM

Sirius Satellite Radio (SIRI) $5.95 +0.33% ... nice little comeback here.

Linda Piazza : 6/2/2005 11:18:05 AM

The BIX is threatening to break lower again, perhaps toward yet-another test of its 200-sma, currently at 363.84, with the BIX a 364.72. The BIX has been moving back and forth across this average, basically consolidating on it.

Jeff Bailey : 6/2/2005 11:11:56 AM

11:00 Internals found at this Link

Linda Piazza : 6/2/2005 11:09:53 AM

The OEX still coils. The 15-minute Keltner chart is settling into an equilibrium position, so the coiling could go on for a while or the OEX could break out, with the timetable just not clear once this settling process begins. Right now, short-term support looks ever so slightly stronger than resistance, but that may mean nothing more than that the OEX will now rise to test the top of the coiling pattern. Or it may mean nothing at all.

Jonathan Levinson : 6/2/2005 11:04:48 AM

Need to step away for 10 minutes here.

Jeff Bailey : 6/2/2005 11:03:08 AM

11:00 Market Watch found at this Link

Jeff Bailey : 6/2/2005 11:00:35 AM

NYSE Bullish % ($BPNYA) benchmark observation on daily interval bar chart at this Link ... NYSE Bullish % ($BPNYA) at this Link

Linda Piazza : 6/2/2005 10:58:20 AM

OEX resistance at the top of the OEX's consolidation pattern (triangle) holds and the OEX turns down to test the bottom support again. That's at about 568.35 or so.

Linda Piazza : 6/2/2005 10:55:20 AM

The SOX climbs under an ascending Keltner resistance line on the 15-minute chart, nudging that line higher. Daily Keltner resistance is from 435.84-437.36, but it turns higher, too. Still, unless there's going to be a breakout, gains might be limited.

Jonathan Levinson : 6/2/2005 10:51:23 AM

July crude is back up to unchanged, flat at 54.60.

Linda Piazza : 6/2/2005 10:50:58 AM

Chop, chop. I knew I wasn't going to be happy with today's trading pattern.

Linda Piazza : 6/2/2005 10:48:05 AM

OEX still within the coiling formation, but now challenging the top of that formation, although not yet the downtrending line off yesterday's high.

Jonathan Levinson : 6/2/2005 10:48:00 AM

Session high for gold, +6.1 at 423.90, with HUI +1.39% at 193.30.

Jonathan Levinson : 6/2/2005 10:46:45 AM

New highs across the board here, QQQQ surging on a successful test of 72 SMA support. 60 min channel resistance is at 38.56, followed by the rising 30 min channel top at 38.60. Link

Jeff Bailey : 6/2/2005 10:44:04 AM

Blast from the past ... Internet Capital Group (ICGE) $6.65 +10.46% ...

Jeff Bailey : 6/2/2005 10:40:17 AM

Pacholder High Yield (PHF) $9.25 +0.43% ... $9.20 x $9.25

Jeff Bailey : 6/2/2005 10:39:27 AM

10-year YIELD ($TNX.X) down 1.0 bp and looks to challenge yesterday's low yield trade of 3.890%.

Jonathan Levinson : 6/2/2005 10:39:06 AM

Volume breadth is back to mixed, declining shares leading advancing 1.15:1 on the NYSE while advancing volume leads 1.19:1 on the Nasdaq. The TRIN is 1.06 here, the TRINQ a more bullish/neutral .8. Direction is still up for grabs here, despite the bearish 30 min/60 min/daily cycle setup.

Linda Piazza : 6/2/2005 10:37:22 AM

OEX breaks below that rising trendline off yesterday's low again.

Jeff Bailey : 6/2/2005 10:36:43 AM

TRIN 1.04 +30% ... VIX.X 12.41 +0.4% ...

Jonathan Levinson : 6/2/2005 10:34:43 AM

The API data is being released now. Headlines:

US WEEKLY CRUDE SUPPLIES UP 1.3M BARRELS: API

US WEEKLY GASOLINE SUPPLIES DOWN 1.4M BARRELS: API

Linda Piazza : 6/2/2005 10:34:00 AM

I knew I didn't trust continuation-form H&S's, especially if there was no follow-through after a confirmation of the formation. The OEX is bakc in the coiling formation.

Jeff Bailey : 6/2/2005 10:33:20 AM

Current OPEN MM Profiles at this Link .... I show the DIA Jun $100 Puts (DIA-RV) bid/offer $0.05 x $0.15.

Jonathan Levinson : 6/2/2005 10:31:29 AM

Crude oil inventories +1.4M barrels, gasoline +1.3M barrels and distillates +700K.

Jonathan Levinson : 6/2/2005 10:30:38 AM

Crude oil session low at 54, equities bouncing.

Jonathan Levinson : 6/2/2005 10:29:17 AM

EIA inventory data due shortly. Crude oil is down .375 at 54.225.

Linda Piazza : 6/2/2005 10:26:33 AM

The OEX is so far clinging to the underside of the rising trendline off yesterday's low, but on the five-minute Keltner chart, at least, Keltner resistance is building just overhead. Funny thing is, though, so is support just under the OEX. I never like this kind of breaking of support (or resistance, for that matter) and then failure to follow through.

Jeff Bailey : 6/2/2005 10:26:24 AM

DaimlerChrysler (DCX) $40.76 +0.41% ... DJ - selling $1 billion in 5-year notes through joint lead managers Banc of America Securities, Deutsche Bank Securities and JP Morgan, syndicate sources say. Price talk puts expected yield 135 to 140 bp over Treasury region. Notes rated A3 by Moody's and BBB by S&P.

Jonathan Levinson : 6/2/2005 10:21:39 AM

Session high for Aug. gold here, +5.70 at 423.50.

Linda Piazza : 6/2/2005 10:21:37 AM

OEX breaking slightly beow the ascending trendline off yesterday's low, with a continuation-form H&S visible on the five-minute chart. Don't trust these formations particularly, but the five-minute Keltner resistance looks strong just above the 568.20-ish already-confirmed neckline.

Jonathan Levinson : 6/2/2005 10:19:41 AM

Nasdaq declining volume has just overtaking advancing, now 1.11:1 in favor of declining, 1.1:1 on the NYSE. QQQQ's short cycle upphase is so far flat/sideways, with price back to the 72 SMA at 38.36 here.

Linda Piazza : 6/2/2005 10:18:44 AM

Slight hint of resistance strengthening and support weakening on the OEX.

Linda Piazza : 6/2/2005 10:16:21 AM

OEX still coiling.

Jonathan Levinson : 6/2/2005 10:15:30 AM

Nymex July crude has reopened, currently -.35 to 54.25, off a session low of 54.125.

Jeff Bailey : 6/2/2005 10:09:04 AM

10:00 Internals found at this Link ... Wednesday's Internals found at this Link

Jonathan Levinson : 6/2/2005 10:08:04 AM

The persistence of QQQQ above its 72 SMA has the 30 min channel downphase stalled and resistance climbing to meet the stalled 60 min channel top at 38.56. A short cycle upphase is underway, but the 38.45-.50 level has so far contained each push: Link

Jonathan Levinson : 6/2/2005 10:06:38 AM

Headline:

U.S. CHALLENGER MAY LAYOFFS UP 42% TO 82,283

Linda Piazza : 6/2/2005 10:06:24 AM

SOX tests Keltner resistance (435.84 on the 15-minute chart, a little higher on the daily), and hesitates there.

Linda Piazza : 6/2/2005 10:05:09 AM

OEX coiling, as I expected might happen this morning.

Linda Piazza : 6/2/2005 10:04:00 AM

TRAN turning down, but turning down within a consolidation pattern in place for a couple of weeks.

Jonathan Levinson : 6/2/2005 10:03:08 AM

Awaiting the Challenger jobs report any minute, and the oil inventory data at 10:30AM.

Jeff Bailey : 6/2/2005 10:01:57 AM

10:00 Market Watch found at this Link

Jonathan Levinson : 6/2/2005 10:01:34 AM

Headlines:

U.S. APRIL FACTORY ORDERS UP 0.9% VS. 1.1% EXPECTED

U.S. APRIL DURABLE GOODS ORDERS UNREVISED AT 1.9%

U.S. APRIL NONDURABLE GOODS ORDERS FALL 0.2%

U.S. MARCH FACTORY ORDERS REVISED 0.7% VS. 0.1%

U.S. APRIL CORE CAPITAL GOODS ORDERS UP 1.7%

U.S. APRIL FACTORY SHIPMENTS UP 0.7%

U.S. APRIL FACTORY INVENTORIES UP 0.1%

Linda Piazza : 6/2/2005 9:59:18 AM

The TRAN often zooms around a bit pre-inventories release. I haven't found the direction of its zoom particularly predictive of those inventories numbers or how the markets will react after their release, although perhap others disagree or have made different observations. This is just anecdotal and not the result of a careful study. Sometimes the TRAN does a V-shaped turnaround and sometimes i continues its pre-release direction. Sometimes it just sits there.

Jonathan Levinson : 6/2/2005 9:57:52 AM

Session low for ten year notes, TNX currently up .4 bps to 3.911% with 3 minutes to go until the 10AM data.

Linda Piazza : 6/2/2005 9:56:37 AM

You'd think CNBC would get their labels right and not label the ongoing discussion with Jack Welch a "Lightening Round" instead of the expected "Lightning Round." Or maybe the discussion will get around to how we ought to be lightening our exposure and so the label would be correct?

Jeff Bailey : 6/2/2005 9:53:59 AM

VIX.X 12.30 -0.48% ... DAILY Pivot Levels ... 11.47, 11.93, Piv= 12.62, 13.08, 13.77.

Jonathan Levinson : 6/2/2005 9:53:21 AM

The Fed has announced a 4.25B overnight repo, which results in a drain of 7.25B for the day.

Linda Piazza : 6/2/2005 9:49:28 AM

As I type, the OEX trades between presumed Keltner resistance at about 568.60 and presumed Keltner support, now at 567.40-567.70. Really, it may be trying to settle into an equilibrium position, a settling down of volatility and a boring market development.

Jeff Bailey : 6/2/2005 9:49:15 AM

Sirius Satellite Radio (SIRI) $5.81 -2.02% ... coverage initiated by Deutsche Securities with a "hold" rating.

Jonathan Levinson : 6/2/2005 9:48:04 AM

Precious metals are strong, gold trying to catch up to silver after its notable lag yesterday, currently +4.20 at 422, silver +.038 at 7.548 with the HUI +1.8% at 194.1, XAU +1.57% at 89.35.

July crude oil closed the morning session -.30 at 54.30.

Linda Piazza : 6/2/2005 9:47:03 AM

Speaking of divergence, the TRAN zooms higher; the Dow, its sister index, moved lower.

Linda Piazza : 6/2/2005 9:46:26 AM

The RLX is zooming higher, too, although not yet above yesterday's high. Lots of divergence among indices.

Jonathan Levinson : 6/2/2005 9:45:57 AM

Volume breadth is mixed, indicating the bifurcated markets that have prevailed for the past two weeks. Currently, declining volume leads 1.19:1 on the NYSE, advancing volume 1.27:1 on the Nasdaq.

Linda Piazza : 6/2/2005 9:45:01 AM

BIG climb in the SOX, back up to the top of the recent consolidation pattern. BIG drop in the BIX.

Jeff Bailey : 6/2/2005 9:43:33 AM

Merger ... Shopping.com (SHOP) $20.77 +19.09% saying it has agreed to be bought by eBay (EBAY) $38.90 -0.53% in a deal valued at $620 million, or $21 per share in cash.

Linda Piazza : 6/2/2005 9:41:28 AM

The OEX broke through the first Keltner support, dipped all the way to the second level near 567.70 and then bounced back again. The outcome is yet unknown, I don't think, but weighted slightly more to the bearish than the bullish side. Only slightly, and I'm still voting for some chopping around.

Jonathan Levinson : 6/2/2005 9:40:43 AM

NQ is breaking its overnight highs here, the strongest of its peers, with QQQ up to 37.45 and testing confluence resistance from yesterday.

Jeff Bailey : 6/2/2005 9:39:08 AM

Payless Shoe Source (PSS) $17.81 +4.33% ... new 52-weeker early.

Jeff Bailey : 6/2/2005 9:38:28 AM

Elan (ELN) $6.30 -21.02% .... hit lower after company said it has been informed that a 4th patient may have contracted a potentially deadly brain disease after being treated with the Tysabri. Partner Biogen Idec (BIIB) $38.40 -3.44% also weak.

Jeff Bailey : 6/2/2005 9:35:35 AM

Merger ... Storage Technology (STK) $36.60 +17.19% said it has agreed to be bought by Sun Microsystems (SUNW) $3.82 -2.05% for $4.1 billion. The deal values STK at $37 per share.

Linda Piazza : 6/2/2005 9:34:10 AM

Jonathan has already warned of the various economic and inventories releases still to come this morning, but remember those as you plan your trading day. They're all potentially market-moving.

Linda Piazza : 6/2/2005 9:32:35 AM

The BIX tests the same Keltner lines as does the OEX. It's holding at those Keltner lines so far, but it's early days yet and I don't quite trust Keltner S/R to work well early this morning.

Jonathan Levinson : 6/2/2005 9:31:37 AM

QQQQ tests lower 30 min cahnnel support here at 38.32, below which the declining 60 min channel bottom is at 38.24. The 72 SMA has declined to 38.38, and the intraday cycles remain bearish below that level.

Linda Piazza : 6/2/2005 9:31:21 AM

Right from the get-go, the OEX tests that first Keltner support I mentioned in my 9:27 post.

Linda Piazza : 6/2/2005 9:27:58 AM

I mentioned earlier, in my first OEX update, that the zooming around yesterday had scattered the Keltner lines on the 15-minute chart so badly that they were of little use in predicting early market behavior this morning. Currently, there's support from 568.51-568.78 and then lower, at 567.55-567.68. Resistance lines scatter, so that they look slightly weaker than support. Futures give a slight hint of weakness, but not a pronounced hint. The Keltner lines suggest that if the OEX does open lower or near yesterday's close, it's likely to find support near 568.51-568.78 and attempt a bounce from there. However, I'll tell you that I don't give this information as much trust as I normally would since those lines were scattered so badly yesterday and since I've seen what kind of market behavior typically follows such zooming around within a broadening formation.

Jeff Bailey : 6/2/2005 9:26:31 AM

Program Trading Levels for Thursday ... HL Camp & Company has their computers set for program buying at $+2.12 and set for selling at $-0.71.

Jonathan Levinson : 6/2/2005 9:20:00 AM

The Fed has a whopping 23.5B in various repos expiring today. So far, a 12B 14-day repo has been announced, leaving 11.5B to be addressed at the 10AM announcement.

Linda Piazza : 6/2/2005 9:13:57 AM

Some talk last night about who was a bear and who a bull, and I just want to clarify before I'm pinned with a label that's perhaps not of my choosing that I'm a "chopper." I'm not talking about today, although I might be a bit of a chopper today, too, but over the intermediate term, I'm a chopper, feeling that markets might chop around a bit. Fits with my view of the charts and the upcoming summer doldrums, too.

Jonathan Levinson : 6/2/2005 9:13:06 AM

Euro futures are up off their overnight lows, having touched 1.2188 last night and currently +.29% at 1.2265. The USD Index peaked just below 88.50 and is currently printing a pennant off a low of 87.72. Link

Jonathan Levinson : 6/2/2005 9:11:21 AM

Session low for ten year bond futures, -3/32 to 113 7/16, with TNX now up 1.1 bps to 3.918%.

Linda Piazza : 6/2/2005 8:53:14 AM

Wednesday morning, I warned that the OEX might have just overrun targets when it edged beneath multiple key support levels at Tuesday's close. After a gap lower yesterday morning, the OEX charged up through level after level of resistance . . . until it got to the top of a broadening formation. There, it hesitated long enough to form a H&S on top of the climb on the 15-minute chart, and it fell precipitously. Then it bounced into the close. Lots of zooming around to close just under the 570 level that has been causing the OEX trouble for so long.

OEX 570 is the 61.8% retracement of the March-April decline, and I've been talking about it for a long time now. Actually, I've been surprised that it played such a strong part in the OEX's trading pattern since the 38.2% and 50% Fib levels had at first seemed less important. The 50% level has since become important as bounces back from the 570 level have been finding support at the 50% level.

Pushes above that 570 level have gone higher and higher, but have always closed back below it, so it's difficult to trust any breakout. That's what happens with broadening formations. So far, rollovers from the 570-572 level have made good bearish entries as long as they were exited automatically at 566. Some days, lucky bears got a push down to a Keltner line currently at 565.81, but lower earlier in the week. Bounces from that Keltner level have made good bullish entries, too, as long as exited automatically near 570, and sometimes lucky bulls got a higher push. However, I'm not certain that either buying those bounces or selling those tests of resistance will prove reliable entries from now on. Once prices start zooming from one side to another of a broadening formation, prices often begin chopping around in a disorganized fashion. The OEX ended the day with 15-minute Keltner lines scattered every which way and of little use in predicting next immediate direction. So, although I'm not sure how long selling resistance near 570-572 and buying support near 565-566 is going to continue to be the best bet, for now, it may be the only game in town until there's a clear breakout one direction or the other. That's if you have to trade. If we're going to begin a chopping-around, disorganized period, directional trades may be whipsawed one direction or another. I would be surprised to see a breakout one direction or the other ahead of tomorrow's economic numbers, but I could be wrong.

Jonathan Levinson : 6/2/2005 8:38:51 AM

QQQQ has rolled over beneath the 72 SMA, currently back to the premarket lows, down 2 cents at 38.37. Link . The 30 min cycle downphase continues, with 30 min channel resistance at 38.50, while the 60 min oscillator is on a bearish kiss well below overbought territory, showing a strong potential bearish divergence if the price can hold below the 72 SMA this morning.

Jonathan Levinson : 6/2/2005 8:33:01 AM

Equities are slightly lower, ticking red, with ten year notes back to their highs, TNX -.9 bps to 3.898%.

Jonathan Levinson : 6/2/2005 8:31:54 AM

Headlines:

U.S. CONTINUING JOBLESS CLAIMS UP 32,000 TO 2.60 MLN

U.S. Q1 PRODUCTIVITY REVISED TO UP 2.9% VS. 2.6% PREV

U.S. Q1 UNIT LABOR COSTS REVISED UP 3.3% VS 2.2% PREV

U.S. Q1 FACTORY PRODUCTIVITY REVISED UP 4.4% VS. 3.9%

U.S. 4-WEEK AVG. JOBLESS CLAIMS UP 3,500 TO 334,500

Jonathan Levinson : 6/2/2005 8:23:03 AM

Ten year notes have eased back ahead of the 8:30 data, with TNX flat at 3.907% and ZN bond futures up 1/32 at 113 9/16. Daily chart of the TNX at this Link

Jonathan Levinson : 6/2/2005 8:21:30 AM

The EIA Petroleum Inventory report will be released today (delayed from yesterday) shortly after 10:30AM. As well, the Challenger Jobs report will be released at 10:AM.

Jonathan Levinson : 6/2/2005 7:43:03 AM

Equities are green, ES trading 1202, NQ 1558.5, YM 10545 and QQQQ flat at 38.39. Gold is up 1.7 to 419.5, silver +.009 to 7.501, ten year notes +9/64 to a session high of 113 43/64, and crude oil -.375 to 54.225.

We await the 8:30 release of Q1 productivity, est. 3%, initial claims, est. 325K and at 10AM, April Factory Orders, est. 1.1%.

Linda Piazza : 6/2/2005 7:17:31 AM

Good morning. The Nikkei declined last night, with other Asian markets mixed. European markets are also mixed ahead of a rate decision by the ECB. Our futures eke out minimal gains. As had been expected, the Dutch people also voted no in their referendum on the EU constitution. The vote was anticipated and the euro continued its bounce off this week's low until the last several hours, when it began consolidating again. As of 6:38 EST, gold was up $1.60, and crude down $0.35. to $54.25. More detail about Asian and European markets follows in succeeding paragraphs.

The Nikkei traced out an upside-down U-shape in first ninety minutes of trading, zooming up about 50 points from the open and turning around and heading straight down. It kept going down below the flat-line level. The Nikkei ended lower by 49.62 points or 0.44%, at 11,280.05. Asian carmakers performed well in earliest trading after Nissan reported strong U.S. sales. Issues impacted by rising crude turned lower, with shipping lines and airlines affected. May's monetary base rose 2.2% year over year, slowing from April's 3.0% year over year growth

Other Asian markets were mixed. The Taiwan Weighted gained 1.14%, and South Korea's Kospi climbed 0.14%. Singapore's Straits Times rose 0.67%, but Hong Kong's Hang Seng declined 0.42%. China's Shanghai Composite plunged 2.23%. Wednesday, the government had announced through its official media that the China Securities Regulatory Commission would again sell state-owned shares of a new grouping of companies it selected.

Most European markets gain, but the FTSE 100 isn't one of those. April's eurozone PPI was unchanged at 4.2% year over year. Month over month, prices climbed 0.4% with March's number revised upward to 0.7%. While that number might have been worrisome, the ex-energy number rose just 0.1% over March's and slowed to 2.1% year over year, so proved less worrisome. May's preliminary estimate was revised lower.

In the U.K., PartyGaming PLC will list on the London Stock Exchange by the end of this month, with that announcement putting gaming stocks in focus and sending many higher. Morgan Stanley downgraded retailer Next PLC to an equal-weight rating, and that company's stock fell. Many other retailers declined, but Marks & Spencer benefited from Morgan Stanley's statement that its stock was preferred over Next's.

In Europe, the ECB will report its rate decision later this morning, but it's not expected to change rates. In France, a strong earnings report from bank Credit Agricole SA put the banking sector in focus. Net income beat expectations. Some other banks reversed earlier losses to post gains. Other companies in the news included sugar refiner Tate & Lyle, dropping after the company reported and refused to quantify the loss it expects after the EU lost at a World Trade Organization dispute panel, and luxury goods manufacturer Richemont, climbing to its highest level in almost three years after UBS upgraded the company's stock to a buy rating and raised its price target. Airlines declined and oil-related stocks climbed, impacted by crude costs above $54.00. Automakers have been mixed, reacting to May's U.S. sales figures and a Citigroup Smith Barney upgrading of BMW to a buy rating. BMW was gaining earlier in the morning, as were Porsche and DaimlerChrysler.

As of 6:58 EST, the FTSE 100 was down 2.40 points or 0.05%, to 5,008.60. The CAC 40 was higher by 7.86 points or 0.19%, to 4,186.11. The DAX was higher by 1.26 points or 0.03%, to 4,528.43.

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