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OI Technical Staff : 6/17/2005 9:59:59 PM

The Market Monitor has been archived.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

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Jeff Bailey : 6/17/2005 7:30:32 PM

Current OPEN MM Profiles found at this Link ... Today's Activity ... The five (5) naked S&P 500 SPX 1,220 Calls (SZP-FD) expired worthless ($0.25, or +100%). Swing trade put stopped on the remaining one (1) Sap Aktiengesell SAP Sep $40 Put (SAP-UH) at $0.70 ($-2.05, or -74.55%). Swing trade put one (1) Apple Computer AAPL Oct. $40 Put (AAQ-VH) at the offer of $4.80. Will use a trade at $41.50 on the stock as a stop. Swing trade long 1/2 bullish in shares of Hanover Compressor (HC) at the offer of $11.91. The previously sold naked five (5) puts for the S&P Dep. Receipts SPY June $119 (SPY-RN) expired worthless at today's close ($0.25, or 100%).

Jeff Bailey : 6/17/2005 7:03:54 PM

Pivot Matrix for next week at this Link

Jeff Bailey : 6/17/2005 5:55:35 PM

Closing U.S. Market Watch found at this Link ... New Highs marked with PINK arrows. Also note gains in energy commodities. We've seen stocks perform well in past despite surge in oil prices, but has eventually weighed psychologically. Somewhat of a double-edged sword that global economy is so strong to create such demand.

Jeff Bailey : 6/17/2005 5:19:41 PM

Closing Internals found at this Link ... March 18 Closing Internals at this Link

Jeff Bailey : 6/17/2005 4:42:56 PM

QQQQ $37.88 -0.05% ... WEEKLY Pivot Levels for next week are $36.82, $37.35, Piv= $37.78, $38.31, $38.74. Daily Pivot Levels are $37.49, $37.68, Piv= $37.95, $38.14, $38.41. Note: Mid-point of June's range so far is $37.965. This has me thinking if QQQQ was "capped" by expiration, then could be the key level early Monday to set tone rest of the month.

Jeff Bailey : 6/17/2005 4:11:08 PM

GMXRW $2.97 +13.35% at the close! GMXR $13.80 +1.17% ...

Jeff Bailey : 6/17/2005 4:02:21 PM

NDX Option Chain just before I went down at this Link

Linda Piazza : 6/17/2005 4:00:38 PM

No key reversals. The DJUSHB even managed a close above the midpoint of its day's range, although it still left a long upper shadow.

Jeff Bailey : 6/17/2005 3:59:46 PM

Back for the final 30-seconds of trade!

Linda Piazza : 6/17/2005 3:56:38 PM

The OEX has an inverse H&S on its daily chart, but it may not confirm it today. The OEX appeared to pierce the neckline today, but then fell back, and it looks as if it may close just beneath it.

Jonathan Levinson : 6/17/2005 3:49:41 PM

NDX volatility (QQV -4.08 at 13.4). It's a young indicator, but it's never been this low before: Link

Linda Piazza : 6/17/2005 3:44:51 PM

Unless there's a quick decline, always possible, the Wilshire 5000 will close near the HOD.

Linda Piazza : 6/17/2005 3:43:37 PM

The OEX can't move above that neckline and may be converting the formation into a neutral triangle at the top of the rise.

Jonathan Levinson : 6/17/2005 3:37:46 PM

Looking at the 2-day chart of the QQQQ, it looks like da-boyz have had it parked right where they want it since yesterday's open. Note the doji top on the 3 minute candle to 38 just now? It looks to want to settle within a 10 cent range between 37.83 and 37.93. Link

Linda Piazza : 6/17/2005 3:37:32 PM

Wilshire not over its neckline and neither is the OEX.

Linda Piazza : 6/17/2005 3:32:47 PM

Wilshire 5000 testing the neckline of that continuation-form inverse H&S.

Jonathan Levinson : 6/17/2005 3:30:43 PM

QQV is printing 13.41, VXO 10.83, and the VXN at or near all time lows at 14.35. I remember not too long ago when 14.35 would have been an extreme low reading for the VIX (now the VXO).

Linda Piazza : 6/17/2005 3:29:57 PM

A continuation-form inverse H&S can be discovered on the Wilshire 5000's chart, too.

Linda Piazza : 6/17/2005 4:04:33 PM

DJUSHB still testing 15-minute Keltner resistance and the 50% retracement of the day's range.

Jim Brown : 6/17/2005 3:28:00 PM

Jeff lost his Internet and probably will not be posting in the monitor the rest of the day.

Jonathan Levinson : 6/17/2005 3:27:38 PM

Back now. Ten year notes closed higher by .2 bps at 4.078%, with Sept. ZN futures down 5/32 at 112 9/16. QQQQ is back above its 72 SMA, holding within its range below 38. The real dilemma is going to be whether the upturning daily cycle indicator overpowers the longer intraday cycles, still trying to hold their downphases. Bears need a break of 37.74, confirmed with a move south of 37.62, while bulls need to break 38.03 to get a shot at the session highs.

Linda Piazza : 6/17/2005 3:27:10 PM

Now there's a little continuation-form potential inverse H&S on the OEX's 15-minute chart. The OEX faces Keltner and historical resistance at 573.04-573.14.

Jonathan Levinson : 6/17/2005 3:24:30 PM

I've just lost my IB feed.

Linda Piazza : 6/17/2005 3:22:31 PM

The OIX has also pushed to a new high, above 500, to 504.11 as I type.

Linda Piazza : 6/17/2005 3:14:14 PM

Keene, thanks for the DJUSHB chart.

Linda Piazza : 6/17/2005 4:05:03 PM

The DJUSHB is rising now to restest the 50% retracement of the day's range and Keltner support, now converted to Keltner resistance, all between 1007-1008.40, with further resistance above that. Lots of possibilities here, including a possible key reversal day.

Linda Piazza : 6/17/2005 4:05:20 PM

The RLX holds just above the neckline of its H&S on its 15-minute chart.

Keene Little : 6/17/2005 3:08:36 PM

Linda, for those who don't follow comments on the Futures side of the monitor, I thought I'd post this weekly chart of the DJUSHB. This could be a real warning about a top of some kind in the housing market. It might only get a pullback but any pullback after the kind of run this sector has had over the past 5 years (10x) needs to be taken seriously. This weekly chart, using the Log scale, shows the index bumping up against the trend line that has turned back every rally to new highs. Link

Jonathan Levinson : 6/17/2005 3:03:59 PM

QQQQ is back to testing 72 SMA resistance at 37.89 after bouncing from a higher intraday low. The short cycle indicators are still downphasing weakly, but will abort on a break above this level: Link

Linda Piazza : 6/17/2005 2:53:44 PM

No new HOD on the Wilshire 5000. No confirmation of a lower high, either, though, which would require a drop below 12,043.53, the trough between the two peaks.

Linda Piazza : 6/17/2005 2:52:38 PM

DJUSHB still keeling over. Now almost to a 61.8% reracement of the day's range.

Linda Piazza : 6/17/2005 2:45:43 PM

The RLX's version of a H&S neckline appears to be at about 451.66, with the RLX currently at 452.58.

Linda Piazza : 6/17/2005 2:44:20 PM

DJUSH still dropping. That idle speculation about the possibility for a key reversal day in this index now seems more plausible. See my 1:58 post.

Jeff Bailey : 6/17/2005 2:43:03 PM

QQQQ intra-day option chain at this Link

Jonathan Levinson : 6/17/2005 2:37:08 PM

July crude oil closed at a session high of 58.45 on the Nymex, +1.875 or 3.31%. 50 tick chart at this Link . Reuters is reporting as follows:

Worries about security of supply were highlighted by the closure in OPEC member Nigeria, of the U.S., German and British consulates in Lagos after a warning of a terrorist threat.

U.S. authorities shut their consulate after the threat involving foreign Islamic militants, U.S. military and diplomatic sources said.

Intelligence information from foreign Islamic militant channels indicated a specific threat to the U.S. presence in Nigeria and its Lagos consulate, a diplomatic source said.

Nigeria has been named by Islamic militant leader Osama bin Laden as a candidate for "liberation" and the United States said last month it had uncovered links between his al Qaeda network and Nigerians.

Link

Linda Piazza : 6/17/2005 2:36:28 PM

DJUSHB testing Keltner support and the 50% retracement of the day's range . . . oops, there it went, although just barely.

Linda Piazza : 6/17/2005 2:35:25 PM

Although there's a H&S shape on the NDX, the spiky candle shadows below the H&S formation makes it difficult to determine exactly where the neckline would be. Somewhere near 1531-1532 seems most likely. There's further Keltner support at 1526.89, however.

Linda Piazza : 6/17/2005 2:33:09 PM

The OEX breaks below nearest Keltner support for the first time in a couple of hours. Next support 571.70 and then 571.04, but the OEX is far from ending this 15-minute period below that former support, so looking for next support may still be premature.

Jeff Bailey : 6/17/2005 2:31:15 PM

Swing trade long 1/2 bullish position in shares of Hanover Compressor (HC) $11.91 Link here, stop $10.90 to begin, target $16.00.

Jonathan Levinson : 6/17/2005 2:31:09 PM

QQQQ is breaking back below 72 SMA support on a small bump in volume. The short cycle indicators are rolling over early, below overbought territory: Link

Linda Piazza : 6/17/2005 2:30:07 PM

Is the NDX rounding over into that right shoulder now? Is the RLX?

Linda Piazza : 6/17/2005 2:29:28 PM

At about 1007, the DJUSHB tests the 50% retracement of today's range, with the index now at 1009.94.

Linda Piazza : 6/17/2005 2:28:28 PM

The OEX tests Keltner resistance up to 573.14, with Keltner support just below at 572.47.

Jonathan Levinson : 6/17/2005 2:27:36 PM

Ten year notes are back to unchanged, TNX flat at 4.0767%, while July crude oil is up 1.725 at a session high of 58.30, a 3.05% gain.

Jeff Bailey : 6/17/2005 2:24:02 PM

Speaking of H/S tops Linda. You see the NYSE today? Looking hunchbacked. Link ... trades its 80.9% retracement today (see Market Wrap chart) at this Link

Linda Piazza : 6/17/2005 2:16:09 PM

$DJUSHB dropping slightly below the support that has held after the first 15-minute zoom.

Linda Piazza : 6/17/2005 2:14:50 PM

ADBE had risen to test the morning's gap from below (in-line guidance and disclosure of a lawsuit), but falls back now. It's perhaps forming an inverse H&S at the bottom of that decline, but a new or equal low will undo that possibility.

Linda Piazza : 6/17/2005 2:13:25 PM

Wilshire 5000 pushing higher again, toward the morning's high, although not there yet. Bulls want a new high. Bears want a lower one or an equal one with bearish divergence. Are there any bears left, though?

Jeff Bailey : 6/17/2005 2:12:50 PM

02:00 Internals found at this Link

Linda Piazza : 6/17/2005 2:10:52 PM

NDX tests the appropriate right-shoulder level for a potential H&S on its 15-minute chart.

Jonathan Levinson : 6/17/2005 2:10:06 PM

Session high for euro futures and GE here, QQQQ up to 37.98 and holding easily above 72 SMA support. The 30 min cycle channel has turned back up, resistance at 38.03.

Linda Piazza : 6/17/2005 2:07:59 PM

Articles have been touting the huge volume in this morning's trading. That's a strong plus . . . unless indices such as the Wilshire 5000 and SPX and OEX should turn negative. Big volume and stronger-than-normal moves to new recent highs or all-time highs are needed ingredients to a key reversal day. Keene brought up the possibility of key reversal days early this morning and I was wondering about the possibility for a pop-and-drop day, too. So far, there hasn't been much of a drop and no evidence of a key reversal day on the indices that have pushed to new recent highs, but I guess I'm just a worrier.

Jeff Bailey : 6/17/2005 2:02:52 PM

02:00 Market Watch found at this Link

Linda Piazza : 6/17/2005 1:59:29 PM

Look at the DJUSHB, above 1000 today. I guess the KB Homes earnings report and Smith Barney (it was Smith Barney, wasn't it?) upgrades certainly helped the homebuilders. Here's another index that bulls do not want to see turn negative today, though, as the DJUSHB of course punched to a new all-time high. A negative close would set up a key-reversal day in this important index. There's no evidence as yet that it would turn negative on the day, so this is just idle speculation. Just noting chart characteristics (and being immensely thankful that I wasn't short anything in the homebuilding sector today).

Jonathan Levinson : 6/17/2005 1:57:22 PM

Volume breadth has strengthened to 2.25:1 for NYSE advancing shares and 1.81:1 for Nasdaq advancing shares, with the TRIN currently .82 and the TRINQ .74. QQV is back down to 13.35, VXO 10.75.

Jeff Bailey : 6/17/2005 1:57:03 PM

Cendant (CD) $22.21 +1.46% ... kicking higher from now flat 200-day SMA.

Linda Piazza : 6/17/2005 1:54:54 PM

The NDX's and RLX's H&S's (15-minute charts) still look possible, although the charts don't give evidence as to whether they're probable.

Linda Piazza : 6/17/2005 1:52:41 PM

The Wilshire 5000 is being squeezed between Keltner support and Keltner resistance. Still watching.

Linda Piazza : 6/17/2005 1:51:32 PM

The OEX hasn't yet been able to break back above Keltner resistance now up to 572.89. Nearby support still thins, but that doesn't matter as long as the OEX holds onto 15-minute closes above the nearest support, now at 572.20.

Jonathan Levinson : 6/17/2005 1:46:36 PM

With the daily cycle showing a bullish kiss and 20-day bollinger resistance 38.50, a trade to that level would be sufficient to generate daily cycle buy signals that could easily press to 39 and above. I'm not proficient with e-waves, but a move up from here could setup this entire pathetic daily cycle downphase as a bull flag, potentially a wave "b" of a bullish a-b-c, with the January highs coming into view for QQQQ. This is why the current 60 and 30 min cycle downphases are key- if they are corrective here, then it sets up an excellent chance of the morning highs being exceeded on the subsequent upphase. If the bears are going to mass, this is the critical place for them to do it and take out yesterday's low. So far, the bulls appear to be winning.

Jeff Bailey : 6/17/2005 1:40:38 PM

What do you think Jonathan? A trade at $38.23 gets you $39.00? 1% box size at this Link MONTHLY R1 at $39.27. I think energy stocks bolster SPY/SPY, so need energy to soften SOON if QQQQ a chance at swing trade target of $39.00.

Linda Piazza : 6/17/2005 1:37:27 PM

RUT still trying to rise free of 15-minute Keltner lines. Not quite successful yet, but the RUT is above almost all 15-minute Keltner resistance, so a tenuous point here for those who want to see the RUT curl over.

Jeff Bailey : 6/17/2005 1:43:19 PM

QQQQ $37.91 +0.02% ... for the past two weeks I've been thinking $38.00 a lid on the QQQQ (option open interest analysis). Today's close could be telling. A close above $38 in my mind will show a commitment to try and save positions, where covered calls at that strike may have been written. Another thought crossing my mind. Remember getting stopped out on 06/07/05 in the SPX 1,220 Calls on that morning spike? Same observation perhaps this morning. Now sets up an observation of SIMILARITY or DIVERGENCE to that time and traders will use next week.

Linda Piazza : 6/17/2005 1:33:52 PM

We're approaching a typical stop-running time of day and I see the RUT trying to initate another breakout move on the 15-minute Keltner chart.

Jonathan Levinson : 6/17/2005 1:28:56 PM

Ten year notes have returned to positive territory, TNX down .5 bps to 4.071%, crude oil holding 22.5 cents below the high, currently 57.90, up 1.325. QQQQ is pulling back from 37.95 but holding above the 72 SMA at 37.87. Intraday QQQQ chart updated at this Link

Jeff Bailey : 6/17/2005 1:28:10 PM

GMXR / GRXRW intra-day chart updates, with some trade/position management in a thinly traded name at this Link Observation has been that the Warrant action has actually driven the STOCK's price. Noted action at the offer in the Warrants yesterday just prior to long entry.

Linda Piazza : 6/17/2005 1:26:20 PM

The RLX also has a potential H&S on its 15-minute chart, neckline at about 452.14, and the RLX currently at 452.80. There's Keltner support near that neckline, of course.

Linda Piazza : 6/17/2005 1:21:10 PM

This morning, the RUT broke above the 3/07 high of 647.64, but it couldn't hold onto that breakout level and is now just below it, with the daily candle so far a doji. What bulls do not want to see is for the RUT to turn negative on the day after pushing above that March high.

Jeff Bailey : 6/17/2005 1:16:57 PM

01:00 Internals found at this Link

Linda Piazza : 6/17/2005 1:16:18 PM

The NDX's formation on a 15-minute chart still looks like a possible H&S.

Linda Piazza : 6/17/2005 1:15:14 PM

Still watching the Wilshire. It's testing that Keltner resistance again, trying to break through it, even though the resistance had looked strong earlier. Short term bears want to see it close this 15-minute period below a Keltner line currently at 12,071, with the Wilshire 5000 now at 12,076.27 and still rising. Failing that, they want a lower high or an equal one with bearish divergence.

Jeff Bailey : 6/17/2005 1:08:23 PM

01:00 Market Watch found at this Link

Jeff Bailey : 6/17/2005 1:05:52 PM

Selling another partial of the GMXRW $2.75. Some "divergence" between common and warrants. GMXR $13.53 GMXRW $2.75 (should be trading below $2.67 based on retracement work shown yesterday).

Linda Piazza : 6/17/2005 1:01:19 PM

Next resistance on the OEX is near 572.60-572.65, with next resistance above that at 574.23. Since it's the time of day that it is, on the day that it is, chart signals may be less predictive than usual, and the OEX and other indices could just trade sideways or zoom who knows where. For now, it's possible/likely that the OEX will attempt a bounce or trade sideways into lowering resistance and then support looks thinner than resistance.

Jonathan Levinson : 6/17/2005 12:51:53 PM

Volume has dried up dramatically on QQQQ, particulary after the high volume we had this morning. Stepping away for 10 minutes here.

Jeff Bailey : 6/17/2005 12:45:14 PM

Oilgear (OLGR) day trader's chart at this Link

Linda Piazza : 6/17/2005 12:44:42 PM

Wow. Someone has probably noted this already, but the Nasdaq has an almost perfectly formed inverse H&S on its daily chart, with the neckline near 2100 and with that neckline rejected today, at least. The left shoulder took a long time to form, across a whole quarter, so a retreat for a few weeks or even months wouldn't undo the possibility, as long as the Nasdaq held roughly to 200-sma support. Of course, a push above the neckline and a holding above it for at least several days would solve all the questions. Definite price/RSI divergence today as that neckline was tested.

Linda Piazza : 6/17/2005 12:41:09 PM

A potential H&S, roughly formed, on the NDX's 15-minute chart. The NDX may be rising into a shoulder-like formation now. Tech bears don't want to see the NDX much above the 1540 shoulder area, although there's some hint that the neckline and, therefore, the shoulders could be rising, so that a little bump above 1540, say up to 1542-1543, might not totally invalidate the formation.

Linda Piazza : 6/17/2005 12:38:33 PM

The RLX is being pressured down toward the Keltner support that has been supporting it and prompting bounces recently.

Jeff Bailey : 6/17/2005 12:38:15 PM

Bullish day trade cancel order alert at this time for Oilgear (OLGR) $17.90 +83.4% ... got above the intra-day pennant apex.

Linda Piazza : 6/17/2005 12:35:19 PM

The OEX did bounce from the 571 level, as I had thought it might. So far, it's been holding below first Keltner resistance, currently at 571.81, and the rise hasn't really been a rise, but a sideways trading while that resistance trended lower. Currently, the OEX is making an effort to move above it. The OEX is now at 571.83, with the current 15-minute period far from over.

Jonathan Levinson : 6/17/2005 12:34:22 PM

The USD Index is down to 87.98, off a low of 87.90, with August gold up 2.60 to 440.50, 1 dollar off its high, and July crude up 1.425 at 58.00, current high 58.125.

Tab Gilles : 6/17/2005 12:34:05 PM

GOLD charts Take some money off the table. $GOX daily... Link $GOX weekly... Link

$XAU Link

PDG Link

NEM Link

Jonathan Levinson : 6/17/2005 12:26:04 PM

The short cycle indicators have turned up but are so far in a weak/sideways upphase hanging below 72 SMA resistance. A move back below the 37.80 line would likely reduce this upphase to directionless chop. But zooming out, we see that so far, the 30 and 60 min cycle downphases are doing nothing since the fall of the gap up open. Bears need to take out yesterday's 37.65-.70 confluence to defeat what is so far shaping up to be another higher high/higher low day.

Jeff Bailey : 6/17/2005 12:30:49 PM

Day trade long setup alert ... for shares of Oilgear (OLGR) $17.43 +78.58% (1/2 position) ... go long on a trade at $16.72, stop $14.90 to begin, target $22 by the close. (Note: Thinly traded stock so use some caution with position size)

Linda Piazza : 6/17/2005 12:25:51 PM

The Wilshire 5000 still holds just below the massed Keltner resistance. That resistance spans up to 12,070.87. As the Keltner channels are now arranged, that resistance looks strong enough to hold the Wilshire 5000 back and support thins a lot, so that down looks easier than up. However, on an opex Friday, chart signals can be trusted less than usual.

Linda Piazza : 6/17/2005 12:18:05 PM

The TRAN is now back below a 50% retracement of the steep decline last year, but above the 38.2% retracement. The TRAN's pullback so far looks corrective, however, so bulls still have some hope that it will push higher again.

Jeff Bailey : 6/17/2005 12:16:10 PM

12:00 Internals found at this Link

Linda Piazza : 6/17/2005 12:16:05 PM

The RLX is now being squeezed between Keltner resistance at 542.86 and supply at 451.82-452.09. This support has been mostly supporting the RLX this week, other than a 15-minute or so violation every now and then, so a drop down to deeper 449.63 support sould be a short-term change in tenor.

Tab Gilles : 6/17/2005 12:08:22 PM

20+ Year Treasury Bond Fund (Leh) iShares (TLT) After taking some profits on the Sept 95 puts (TLTUQ) got back in this morning. With $CRB and commodities rising I believe that "infaltion" is being signaled and that bonds will decline further. Link Link

Jonathan Levinson : 6/17/2005 12:07:11 PM

Back to find QQQQ testing 72 SMA resistance from below at 37.90 with the short cycle indicators trying to turn up from oversold territory. Volume has eased but remains high for this time of day, 59.4M QQQQs traded so far. Volume breadth is back to positive, 1.06:1. Link

Jeff Bailey : 6/17/2005 12:03:03 PM

12:00 Market Watch found at this Link

Tab Gilles : 6/17/2005 11:58:26 AM

Murphy Oil (MUR) Link Link

Jeff Bailey : 6/17/2005 12:00:15 PM

Swing trade put alert for one (1) of the Apple Computer AAPL Oct $40 Put (AAQ-VH) at $4.80 offer. Apple Computer (AAPL) $38.05 +0.18% here. VXN.X 14.90 -0.46% ...

Linda Piazza : 6/17/2005 11:56:47 AM

The SOX just trades sideways.

Tab Gilles : 6/17/2005 11:55:15 AM

Last night I was going over some Nasdaq and NDX stocks. Cisco's chart presented some interesting technicals. A Flag formation, I wanted to see if there was a break over that $20 resistance level followed by some higher vloume. Yesterdays chart... Link Todays... Link

Linda Piazza : 6/17/2005 11:55:00 AM

OEX approaches the bottom of this morning's gap higher, so continue to watch for a potential bounce. Those who might have entered bearish positions near the day's high might want to consider how they'll treat the bottom of the gap and/or 570.24-570.76 Keltner support. There's likely to be a bounce attempt somewhere through there and it will likely be the size of the bounce that tells us something about bullish and bearish resolve. Will you take partial profits ahead of that bounce or weather the bounce?

Linda Piazza : 6/17/2005 11:48:31 AM

Wilshire 5000 sinking below Keltner support, tentatively turning it into resistance. A drop toward 12,013.30 might be possible, with next support below that at 11,970.

Linda Piazza : 6/17/2005 11:47:34 AM

The OEX is now just barely into this morning's gap, with potential gap support likely prompting a bounce somewhere through here. If there is such a bounce, bears would prefer that it stop short of 15-minute closes aboe 571.94. Next Keltner resistance above that is at 572.57-572.92.

Jonathan Levinson : 6/17/2005 11:46:24 AM

Stepping away for 10 minutes to make way for the cleaning staff.

Jonathan Levinson : 6/17/2005 11:39:05 AM

Session high for July crude here at 57.85, +1.275 or 2.25%. Hitting 57.925 as I type.

Linda Piazza : 6/17/2005 11:36:50 AM

The OEX clings to the underside of the Keltner support it just violated. This is not what bears want to see. They want to see a quick drop down to 571, and then, perhaps after a bounce up to test resistance, a rollover down toward 570.

Jeff Bailey : 6/17/2005 11:38:20 AM

Beetle's Balanced Benchmark alert all asset classes now in positive territory for the quarter! Link

Linda Piazza : 6/17/2005 11:30:06 AM

RLX is about to test Keltner support that has mostly supported it with minimal breaches--usually only 15 minutes or so, with that support at 451.81.

Linda Piazza : 6/17/2005 11:28:51 AM

The Wilshire 5000 is sinking into Keltner support, but hasn't quite breached it. If it can't mount a bounce soon, however, the Keltner resistance will thicken above it.

Jonathan Levinson : 6/17/2005 11:21:15 AM

Volume breadth goes negative 1.23:1 on the Nasdaq, TRINQ up to .98 with QQV going green at 14.05.

Linda Piazza : 6/17/2005 11:17:04 AM

The OEX now looks vulnerable to 570-571, but more likely 570. That's if we can trust chart signals today. So far, we can, but this is mid-morning on an opex Friday and strange things begin to happen. So far, it unfolds just as Keltner charts suggest it might.

Jonathan Levinson : 6/17/2005 11:16:53 AM

Session high for September euros at 1.2277. 100 tick chart at this Link . Sept. CAD futures at .8113, 100 tick chart at this Link

Linda Piazza : 6/17/2005 11:15:28 AM

Wilshire 5000 also tests Keltner support, down to 12,053.71, and then again scattered down to 11,965.03. Market bulls want this to hold.

Jeff Bailey : 6/17/2005 11:18:59 AM

Oilgear Co. (OLGR) $18.54 +89.9% Link ... percentage gainer at the NASDAQ. Filed this 10-Q late yesterday. Link

Linda Piazza : 6/17/2005 11:13:55 AM

The OEX tests 572.16 Keltner support, with bulls wanting to see that support hold on 15-minute closes.

Jeff Bailey : 6/17/2005 11:17:02 AM

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

Jonathan Levinson : 6/17/2005 11:13:18 AM

Nasdaq advancing volume breadth 1.08:1, on the NYSE it's 2.01:1.

Jonathan Levinson : 6/17/2005 11:10:46 AM

July crude is down to a .85 gain here at 57.425. 5-day 50-tick chart at this Link . QQQQ has dipped back below the 72 SMA, but it needs to get moving directionally in order to avoid a corrective 30/60 min downphase. This should be prime time for the bears, and if they blow it, it would make a very strong case for a new daily cycle upphase in progress. So far today, there's another higher high and higher low.

Linda Piazza : 6/17/2005 11:06:07 AM

I don't know if someone has already mentioned it, but the Wilshire 5000 tested the 3/07 high of 12,108.93 this morning, with this morning's high at 12,110.00. The Wilshire 5000 has pulled back to 12,065.99 now and appears to be still dropping. Double-top or new breakout in the making? Dangerous point for both bulls and bears here. The daily chart shows major Keltner-style divergence here, but that can be erased if the Wilshire keeps pushing higher and tugs Keltner lines along with it.

Jeff Bailey : 6/17/2005 11:05:36 AM

Good comment (or I was thinking same thing yesterday) from CNBC's Bob Pisani. With S&P 500 now positive for quarter, funds may be pressured to buy stocks into quarter's end when shareholder's will receive their quarterly prospectus.

Jeff Bailey : 6/17/2005 11:01:52 AM

11:00 Market Watch found at this Link

Jeff Bailey : 6/17/2005 10:57:58 AM

e-mini S&P (es05u) did some fine tuning with my bullishly fitted 38.2%. Updated chart at this Link

Linda Piazza : 6/17/2005 10:56:52 AM

So far, no new high on the OEX, but so far, 572.15-572.39 potential support holds. May be about to test it again.

Jonathan Levinson : 6/17/2005 10:52:43 AM

QQQQ's back to the 72 SMA at 37.88, but on much lighter volume and bouncing as I type. The short cycle indicators are stabilizing above oversold territory after a sharp drop off the highs- it's time for the 30 min cycle and 60 min cycle bears to do their work- otherwise, a bounce back above 38.00 brings the 30 min channel top at 38.20 into view. Link

Linda Piazza : 6/17/2005 10:46:08 AM

The BIX did not close the just-completed 15-minute period above the Keltner resistance currently at 366.64-366.67, so that it didn't create a breakout signal, but it's continuing to test it.

Linda Piazza : 6/17/2005 10:44:49 AM

So far, neither the BIX nor the OEX has topped its previous HOD. The BIX currently tests 15-minute Keltner resistance, although the OEX hasn't quite gotten there yet. Important tests going on.

Jeff Bailey : 6/17/2005 10:40:03 AM

10 Most Actives ... MSFT $25.09 +0.19%, QQQQ $37.96 +0.15%, CSCO $19.68 +0.76%, INTC $27.32 +0.70%, SUNW $3.92 +1.55%, MLNM $9.53 +15.23%, SPY $121.66 +0.21%, ORCL $12.48 +0.16%, GE $36.47 +0.96%, SIRI $6.05 +1.00%

Linda Piazza : 6/17/2005 10:37:57 AM

According to "record session" candlestick theory, the RUT is certainly due for a pullback, but we knew that anyway, didn't we? On a daily closing basis, however, to see a real change in trend, there would have to be a daily close beneath a Keltner line currently at 632.85, something that hasn't happened since May 13. Until that happens, any pullback will be just a pullback to trend support.

Jeff Bailey : 6/17/2005 10:34:42 AM

Sept. Crude Oil futures (cl05u) $59.19 +1.80% (30-min delayed) ... alert here at contract high settlement from 04/04/05.

Linda Piazza : 6/17/2005 10:32:22 AM

The BIX's Keltner chart looks remarkably like the OEX's this morning, with these two often showing such similarities. Lately, with the bifurcation in the BIX and the RLX, the OEX has tended to diverge a bit more. This morning, though, the BIX found 15-minute support on the analogous Keltner lines to those that supported the OEX on the pullback, and the BIX rises to test Keltner resistance now at 366.39-366.55, just below the day's high. The BIX also pierced those Keltner lines earlier this morning, but couldn't close 15-minute periods above them. With the BIX currently at 366.26, we're about to get another test.

Jeff Bailey : 6/17/2005 10:32:12 AM

ITT Industries (ITT) $96.04 +0.92% Link ... notable new 52-weeker at the big board.

Jonathan Levinson : 6/17/2005 10:28:57 AM

Ten year notes holding their losses, TNX up 1.6 bps at 4.092% with July crude oil up 1.075 to 75.65 as QQQQ tests 72 SMA resistance from below.

Linda Piazza : 6/17/2005 10:28:33 AM

The SOX isn't looking particularly promising on a 15-minute Keltner basis. It's clinging to Keltner mid-channel support just above 428, piercing it during the last two 15-minute periods, but then trying to maintain it. It's beginning to look more vulnerable to a decline, perhaps to 426, perhaps to 424.27, but it needs a 15-minute close beneath a Keltner line currently at 428.23 first, to set up that target. If it instead continues to find support there, it could rise back toward 429.41 and then toward the day's high.

Linda Piazza : 6/17/2005 10:25:57 AM

The OEX did bounce from the 15-minute Kelnter support now from 571.65-572.12. It's rising and bears want to see a lower high or an equal one with bearish divergence while the bulls want to see a higher high and a 15-minute close above a Keltner line currently at 573.93.

Jeff Bailey : 6/17/2005 10:25:44 AM

Somebody just flushed a "boatload" of the GMXRW's $2.60 -0.76% from $2.90. I had a trailing stop on additional portion of position at $2.85 (stop limit) and it blew buy that with nothing filled. Now canceling that order. (this type of action why I didn't officially profile this trade for MM portfolio)

Jonathan Levinson : 6/17/2005 10:20:52 AM

Big volume for a change, with 37.9M QQQQ shares already traded, compared with yesterday's 90.5M total.

Linda Piazza : 6/17/2005 10:19:47 AM

The TRAN tested the 100-sma at 3611.29 this morning, reaching a HOD of 3606.94, and it's now pulled back, but has the 30-sma and 200-sma as potential support below at 3566.29 and 3557.71, respectively. The TRAN is at 3584.64 as I type.

Jeff Bailey : 6/17/2005 10:19:21 AM

VXN.X 15.29 +2.13% ... DAILY Pivot Levels ... 14.51, 14.81, Piv= 15.18, 15.48, 15.85.

Jonathan Levinson : 6/17/2005 10:19:05 AM

New lows for QQQQ and NQ. 30 min channel support is currently at 37.70, below which is daily S2 at 37.62. The cycle channels should continue to decline as price holds below the 72 SMA at 37.87.

Jeff Bailey : 6/17/2005 10:18:01 AM

VIX.X 11.26 +0.98% ... DAILY Pivot Levels ... 10.85, 10.97, Piv= 11.16, 11.29, 11.48.

Linda Piazza : 6/17/2005 10:17:54 AM

The RLX has pulled back off its high of the day, too. The RLX has historical resistance in the 453.50-454 zone and it's been struggling with that over the last couple of days.

Jeff Bailey : 6/17/2005 10:17:04 AM

10:00 Internals found at this Link

Linda Piazza : 6/17/2005 10:16:55 AM

The OEX is coming back to test Keltner support now near 571.64-572. Bulls want to see that hold on 15-minute closes and for the OEX to then continue pushing higher. Bears want to see that support fail or at least to see a lower high or an equal one with bearish divergences. Here's our first test.

Linda Piazza : 6/17/2005 10:10:32 AM

The OEX's 60-minute Keltner chart is even more telling, at least so far. The 60-minute period has not been completed. Link

Jonathan Levinson : 6/17/2005 10:08:43 AM

QQQ breaks 72 SMA support on a surge in volume, volume breadth deteriorating to a 1.13:1 lead for advancing Nasdaq shares. The TRINQ is up to neutral at .7, QQV up to 13.94.

Linda Piazza : 6/17/2005 10:07:47 AM

TRAN pulling back to test its breakout level on the 15-minute chart, with that level at 3586.19 and the TRAN currently at 3587.32, well off the above-3600 HOD. Market bulls want to see the TRAN hold that breakout level on 15-minute closes, particularly as it's just above the 50% retracement of last week's rally, with that number at about 3584. Bulls don't want to see a only a big candle shadow piercing that resistance on longer-term charts.

Linda Piazza : 6/17/2005 10:03:36 AM

No breakout on the OEX's 15-minute chart and danger of an evening-star candle this 15-minute period. Note the bearish divergence on RSI, but not on CCI as this morning's high was hit. Link

Jeff Bailey : 6/17/2005 10:02:44 AM

10:00 Market Watch found at this Link ... QQQQ session high makes some sense from perspective of yesterday's comments regarding a trader long some size in the underlying QQQQ selling a June $38 CC for $0.20.

Jonathan Levinson : 6/17/2005 10:01:46 AM

QQQQ has pulled back to yesterday's closing range, still holding above the 72 SMA at 37.88, below which the intraday cycle bias will go negative. The short cycle indicators have just flashed a sell signal, though volume breadth remains strong on both exchanges. Updated chart at this Link

Jonathan Levinson : 6/17/2005 9:58:11 AM

A 6B 6-day repo results in a net drain of 2B against the 8B expiring. However, lately we've been seeing adds to follow on the Monday sfollowing these multiday Friday repos- if so, we can expect a net add on Monday.

Jeff Bailey : 6/17/2005 9:56:53 AM

Dow Jones Home Construction (DJUSHB) 1,027.40 +6.41% ... sector winner early. New all-time high. Overhead supply looks limited.

Linda Piazza : 6/17/2005 9:55:45 AM

OEX back to the 573.50 level.

Linda Piazza : 6/17/2005 9:55:27 AM

TRAN below 3600 again, but only barely. SOX dropping back near the open, though. Watch.

Linda Piazza : 6/17/2005 9:53:48 AM

The SOX is lagging in the sense that it hasn't broken to the upside out of the last month's consolidation zone. It's back inside that zone, although posting a gain today.

Jeff Bailey : 6/17/2005 9:53:05 AM

Bearish swing trade put stop alert for the one (1) Sap Aktiengesell SAP Sep 40 Put (SAP-UH) $0.70 bid. SAP $42.36 +1.85% ...

Linda Piazza : 6/17/2005 9:52:37 AM

OEX now above the 573.50-ish level, but needs to hold that into the close to be safely above that January-March, 2004 consolidation zone. The 30-minute chart shows upside potential target of 575.69. Bulls, I've been warning about this for a while, but continue to keep your profit-protecting plans in place. I, like many others, am worried about the possibility of a pop-and-drop day, although not convinced it will happen. Just want you to go home with your profits and not give them up if it does happen.

Jonathan Levinson : 6/17/2005 9:52:16 AM

VXO 10.42, QQV 13.68. Advancing volume now leads 7.39:1 on the NYSE, 4.13:1 on the Nasdaq.

Jonathan Levinson : 6/17/2005 9:50:52 AM

Bonds have weakened, TNX up 1.9 bps at 4.095%, while QQQQ holds above 38.00, the 30 and 60 min channel tops now beginning to rise on the persistence above the 72 SMA. The short cycle indicators are buried in oversold, so its time for either a trending bullish move or a reversal to relieve the overbought pressure. Link

Linda Piazza : 6/17/2005 9:50:27 AM

The BIX this morning has broken out above a best-fit trendline off the May 18 high, but that best-fit trendline ignored the candle shadow from June 1. That spike higher, soon reversed, saw a high of 368.20, so that the BIX probably needs to move above that to confirm its upside break of the recent consolidation pattern. The BIX is now at 366.60.

Linda Piazza : 6/17/2005 9:48:43 AM

TRAN still zooming, now approaching its 100-sma at 3611.46 with the TRAN already at 3602.91.

Jonathan Levinson : 6/17/2005 9:48:09 AM

Consumer sentiment 94.8 vs. 88.8 exp.

Jeff Bailey : 6/17/2005 9:47:53 AM

Silicon Valley Bancshares (SIVB) $49.00 +0.57% ... notable new 52-weeker at the NASDAQ.

Linda Piazza : 6/17/2005 9:47:39 AM

The RLX zoomed higher, too, this morning--what didn't?--but closed the first 15-minute period at the breakout zone and not above it. This is contrary to recent tests of this level, when the RLX has broken out above the breakout level, so unless the RLX can successfully close 15-minute periods above this 454.94 level (now at 454.76) it will have been creating Keltner-style bearish divergence. This serves as a warning only, and not a promise of a pullback.

Jeff Bailey : 6/17/2005 9:45:45 AM

GMXR $14.17 +3.88% .... GMXRW $3.05 +16.41% ....

Jeff Bailey : 6/17/2005 9:43:32 AM

GMX Resourses Warrants (GMXRW) $2.94 +12.21% ... taking partial position profits here.

Linda Piazza : 6/17/2005 9:42:56 AM

The OEX has pierced 15-minute Keltner resistance and then pulled back, not yet creating a breakout signal on that chart. The 30-minute chart shows a potential upside target of 575.61, but the 573.50-ish (range, not exact number) level was resistance from January-March of 2004 before the OEX pulled back from that level for another regrouping, and so this should be presumed to be possible strong resistance.

Jonathan Levinson : 6/17/2005 9:39:44 AM

Volume breadth 5.7:1 for advancing NYSE volume and 4.33:1 on the Nasdaq. The TRIN is bullish at .42, the TRINQ extreme at .34.

Jonathan Levinson : 6/17/2005 9:37:13 AM

VXO 10.94, QQV 13.36.

Linda Piazza : 6/17/2005 9:36:52 AM

Still having difficulty with chart service this morning, so I'm not certain that my figures are the most up-to-date, but key indices are showing gains, many in breakout mode, with even the TRAN participating despite the rise in crude costs. The TRAN, in fact, has zoomed above a 50% retracement of last week's steep decline. Amazing. Record deficit, crude above 57.00, and the TRAN is zooming this morning.

Jonathan Levinson : 6/17/2005 9:34:05 AM

QQQQ spiked to 38.21 and spiked back down immediately, now testing the premarket highs and so far holding above 38-38.03. 30 and 60 min channel resistance are at 38.01, but bears need a break of 37.88, the 72 SMA, to cut off the bullish intraday cycle bias here.

Jeff Bailey : 6/17/2005 9:33:51 AM

SPX 1,217.19 +0.52% ....

Jeff Bailey : 6/17/2005 9:33:34 AM

Exxon Mobil (XOM) $60.75 +1.04% ... open for trade.

Linda Piazza : 6/17/2005 9:33:11 AM

Had difficulty getting charts at first. The OEX has pushed above the top of its rising regression channel and 30-minute Keltner resistance. New upside target at 572.96, but be extremely careful to guard your profits this morning. Consumer sentiment still coming and SPX settlement this morning, and then will markets be free to float downward?

Jeff Bailey : 6/17/2005 9:33:02 AM

General Electric (GE) $36.36 +0.69% .... open for trade.

Jeff Bailey : 6/17/2005 9:31:56 AM

Well Fargo (WFC) indicated $62.01 ...

Jeff Bailey : 6/17/2005 9:31:15 AM

It'll take a few minutes to get all SPX stocks open for trade, but SPX 1,215.09 +0.34 early.

Jeff Bailey : 6/17/2005 9:26:59 AM

Internet Initiative Japan (IIJI) $10.70 Link ... sharply lower at $8.17 after the company said it is terminating its Japan initial public offering after just 300 prospective investors had submitted purchase orders. (#4 most active)

Jeff Bailey : 6/17/2005 9:20:21 AM

Oooooooe! This market better open up quick! We're getting very close to 1,220!

Jonathan Levinson : 6/17/2005 9:19:00 AM

July crude oil finished the morning session at 57.275, up .70 and off a high of 57.825.

Jonathan Levinson : 6/17/2005 9:10:35 AM

Bonds are holding their losses while equities and precious metals continue higher, QQQQ currently printing 38.03 and August gold +2.60 at 440.5, a dime off its high.

Linda Piazza : 6/17/2005 8:44:01 AM

The dollar is beginning to take a hit.

Jonathan Levinson : 6/17/2005 8:38:00 AM

QQQQ is holding 38, ten year notes down 3/64 at 112 5/8 and TNX up 1 bp at 4.086%. Gold is up 1.0 at 439.10, off a high of 439.90. The market has greeted the current account data with a yawn.

Linda Piazza : 6/17/2005 8:37:11 AM

The OEX finally closed above 570 yesterday. The Wilshire 5000 closed above 12,000 for the first time since March, closing above the late-December swing high, but not the March high. The RUT confirmed Wednesday's breakout above the descending trendline off the 12/31 high by posting further gains, although it couldn't quite move above the March high. The MID moved to a new high. The RLX, another recent index leader, did not confirm the potential evening-star reversal signal begun the previous two days by turning down, but it did produce yet-another small-bodied candle at the top of its climb, so it didn't totally refute the possibility of a reversal, either.

Yet, are we moving into a new market paradigm or is there something disturbing about the relative (to those other indices) underperformance of the big-cap NDX and OEX, and perhaps the Dow? And what about the TRAN's location nowhere near any recent high? The TRAN did manage a bounce from its 200-ema, up through its 200-sma, closing a little above that yesterday. I'm well aware of the fact that the small-caps sometimes lead other markets. Yet, the former market leaders have some catching up to do. The market generals are lagging the parade.

I see potential inverse H&S's all over the place on the daily charts: the Dow, a lopsided one on the OEX, a sort of rough one on the NDX. So why am I still hanging back, uncertain about committing to the upside, or rather convincing readers to commit to the upside? In my own trades, I've been trying to be careful to set my bear call spreads far above nearby action, afraid of more upside, lots more upside, while I can't quite convince myself that it will come. Part of the reason lies in the TRAN's behavior. What is it signaling? If the RLX is signaling that the economy is recovering so well, why is the TRAN, market-sensitive as it is, signaling some indecision? Crude costs are of course part of the answer, but WMT isn't going to keep the RLX performing so well, either, if crude costs punish consumers.

For now, let's just narrow the scope to look back at the OEX on the 15-minute and 30-minute Keltner charts. Yesterday at the close, the OEX had just hit Keltner resistance on the 15-minute chart, turning lower from that resistance, but holding above the midline of the rising regression channel. The upper Keltner channel still turns higher, so it's possible for the OEX to climb the underside of that Keltner line. The 30-minute chart has contained the OEX throughout this month, except for breaches that last only a few hours, and 30-minute resistance lies at 571.47. Without a breakout, then, the OEX is likely to find resistance on 30-minute closes somewhere between 571.50-572.30, the top of the OEX's rising regression channel. Bulls should still have profit-protecting plans in place for that level. Beyond that, however, I think we have to wait to see how the market behaves after SPX settlement this morning and the sentiment number at 10:00.

Jonathan Levinson : 6/17/2005 8:32:22 AM

Not a twitch for QQQQ or 10-year treasuries on the 8:30 data.

Jonathan Levinson : 6/17/2005 8:30:53 AM

Headlines:

U.S. Q1 CURRENT ACCOUNT DEFICIT UP TO RECORD $195.1 BLN

U.S. Q1 CURRENT ACCOUNT DEFICIT ABOVE $189 BLN EXPECTED

Jonathan Levinson : 6/17/2005 8:29:32 AM

Ten year notes are negative ahead of the 8:30 data, TNX currently up 1.8 bps at 4.094%. QQQQ at a session high of 38.00, crude oil +.8 at 57.375.

Jonathan Levinson : 6/17/2005 8:15:26 AM

Looking over the cycle picture on the NQ futures, there's an interesting setup today. Yesterday saw the 30 and 60 min complete their upphases and a 30 min cycle downphase kick off. Today's bounce has not been high enough to violate the stalled 60 min cycle channel, and so this could be the last hurrah for the 60 min cycle upphase. If so, however, the current bounce needs to reverse within the first hour after the cash open. Here's the rub: the daily cycle downphase, which has been weakening, is stalling this morning, with the 10 day stochastic on a bullish kiss for the first time since the end of April. Either the 30/60 min cycles are going to prevail and reignite the daily cycle downphase, or the daily cycle is going to press the intraday cycles into a bullish trending move.

Jonathan Levinson : 6/17/2005 7:50:00 AM

Equities are green, ES trading 1219, NQ 1552, YM 10637 and QQQQ +.08 at 37.98. Gold is up 1.70 to 439.60, silver +.051 to 7.417, crude oil +.775 to 57.35 and ten year notes -3/32 to 112 39/64.

We await the 8:30 release of the Q1 Current Account, est. -190B, and at 9:45, Michigan Sentiment, est. 88.8.

Linda Piazza : 6/17/2005 7:16:31 AM

Good morning. The Nikkei posted a strong gain with commodity related issues rising across Asia as crude climbed ever higher. Most Asian bourses gained, with China's one exception. European markets climb with the FTSE hitting a new three-year high earlier today. Our futures traded mostly sideways until about 5:00 am EST when they saw a stronger bounce, although I have not yet been able to identify the cause of that 5:00 am move. As of 6:56 EST, gold was up $1.00, and crude, up $0.77 to $57.35. More detail about Asian and European markets follows in succeeding paragraphs.

In Japan, June's Telerate tankan survey showed a rise of 2 points for major manufacturers month over month, and a rise of one point month over month for non-manufacturers. The Nikkei gapped higher in early trading. Then, as our markets have often done lately, the Nikkei spent hours consolidating in a tight range. In the last hour of trading, the Nikkei zoomed up again, closing higher by 97.65 points or 0.86%, at 11,514.03. As happened yesterday, commodity-related issues such as Nippon Steel and Sumitomo Metal Mining rose throughout Asia.

Most other Asian markets closed higher, too. The Taiwan Weighted gained 0.18%, and South Korea's Kospi rose a modest 0.05%. Singapore's Straits Times climbed 0.29%, and Hong Kong's Hang Seng added 0.57%. China's Shanghai Composite was one of the few Asian bourses to lose ground, easing 0.04%.

All European markets gain, with the FTSE 100 hitting a new three-year high today, with that high heralded across newsletter articles and on CNBC stations. In Europe as in Asia, the rise in crude has sent commodity-related issues higher, with Europe's oil majors benefiting. The eurozone's industrial production showed a better-than-expected 0.6% gain month-over-month in April against revised-higher March numbers, although other data has hinted at worsening conditions since April. Most expect another negative number for May. Still, this number has dampened hopes for a rate cut. Strong results from Germany and Italy were responsible, at least in part, for the IP figure, but all sectors with the exception of energy gained.

Deals in Europe have involved BP PLC's intention to sell some of the oil fields off Trinidad to Perenco and Neal & Massy Energy, with that sale conditional. U.S. beverage maker Constellation Brands Inc. has said that a consortium to which it belonged will not make an offer for Allied Domecq, with Allied Domecq's stock falling as a result, although Pernod Ricard SA plans to go ahead with its offer for Allied. There just will be no bidding war now. Corvus Capital PLC also said that it would not go forward with an offer for British insurer Royal & Sun Alliance, with the insurer dropping as a result. Dutch bank ABN Amro Holding announced its intention to acquire a 3.9% stake in Banco ABN Amro Real.

In other news, Skandia Forsakring has conditionally approved a settlement offer from its sold unit American Skandia, with American Skandia proposing the $95 million settlement in a case brought by the New York Attorney General and SEC. Satellite Services group Inmarsat PLC, a service provider to CNN and the U.S. Department of Defense, among others, has priced its IPO and will begin trading June 22, just ahead of Party Gaming's IPO. Also in stock-related news, Denmark's Novo Nordisk announced U.S. Food and Drug Administration approval for its Levemir insulin analogue for diabetes, and the stock was rising in early European trading.

As of 7:05 EST, the FTSE 100 was higher by 34.90 points or 0.69%, at 5,079.90, off the day's high. The CAC 40 was higher by 31.81 points or 0.76%, at 4,216.96. The DAX was higher by 31.64 points or 0.69%, at 4,611.51.

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