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Keene Little : 5/6/2008 1:16:05 AM

Tuesday's pivot tables: Link and Link

Monday's price action was bearish enough to confirm the bearish reversal pattern set up on Friday but not bearish enough to allow bears to breathe easier yet. The SPX daily chart shows SPX dropped back down to its broken downtrend line from October which could act as support for another bounce higher: Link

Monday's pullback can only be considered a 3-wave move so far and that makes it just a correction of the rally so far. Any push back above Friday afternoon's high (SPX 1414, DOW 13067) would leave the pullback as just a correction and it would likely mean we've got another push higher coming. I still like a short against Friday's high but would be very nervous with a push higher than levels mentioned above.

OI Technical Staff : 5/5/2008 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The Market Monitor has been archived.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 : 5/5/2008 9:58:59 PM

Nymex Crude ticking higher at $120.06 ...

Jeff Bailey : 5/5/2008 9:57:49 PM

US military saying that Sunni insurgents killed 10 Iraqi soldiers and wounded 13 others at a Diyala province checkpoint. US military blaming al-Qaida insurgents.

Jeff Bailey : 5/5/2008 9:25:22 PM

Per this evening's Wrap ... 13-week Auction (.pdf file) Link

Jeff Bailey : 5/5/2008 8:50:32 PM

Fed Chairman Ben Bernanke's Speech at Columbia Business School this evening Link

Jeff Bailey : 5/5/2008 6:07:46 PM

JP Morgan reportedly set to buy $3.6 billion, or 47% stake in Target's credit card receivables.

Jeff Bailey : 5/5/2008 6:01:48 PM

Merck reportedly cutting 1,200 jobs amid various drug approval delays.

Jeff Bailey : 5/5/2008 5:41:02 PM

Closing U.S. Market Watch found at this Link

"Services" sectors in blue.

Jeff Bailey : 5/5/2008 4:50:28 PM

Closing Internals at this Link

Linda Piazza : 5/5/2008 4:00:27 PM

We're ending the day with the SPX pulling back with a relatively small-bodied candle. The decline stopped at former resistance, the descending line off the October high, so that gives bulls some hope, but nothing there precludes (or promises) a further slide down to the 10-sma, now at 1394.66.

Jeff Bailey : 5/5/2008 3:52:50 PM

July wheat was off $0.016 at $8.514.

Jeff Bailey : 5/5/2008 3:51:03 PM

December corn settled $6.126, off $0.168

Jeff Bailey : 5/5/2008 3:48:25 PM

May corn settled down $0.20 to $5.82/bushel, while beans were lower by $0.195 to $12.73/bushel. Cool temperatures across most of the nations breadbasket left May wheat lower by $0.035 at $7.925.

Linda Piazza : 5/5/2008 3:43:42 PM

Time to make end-of-day decisions if you haven't already. Nothing is promised or a given in this market environment, but I see nothing to dissuade me from the scenario that I presented at 9:31 this morning, that the SPX could be into that sideways/sideways-down pullback toward the 10-sma, where equity bulls want it to find support. If it does pull back there, we'll find out more about strength as it's not impossible that it could pull back to the 30-sma. Well, nothing is impossible but you know what I mean.

Jeff Bailey : 5/5/2008 3:42:08 PM

Having surged to as high as $4.22, Sep Copper (hg08u) settled up $0.12, or 3.15% at $3.929, after late-afternoon word that four (4) of Corporacion Nacional del Cobre's five (5) contract division workers voted to end their strike.

Linda Piazza : 5/5/2008 3:33:47 PM

The TRAN has been coiling, too, since Friday morning. As of a few minutes ago, it delivered a death knell to the hope that it might show the way out of that coil for indices such as the SPX, OEX and Dow. The TRAN tends to lead those other indices. Instead of breaking up out of the triangle it had formed while coiling or breaking down out of it, the TRAN just traded all the way into the apex and then moved sideways out of it. Such action renders the triangle worthless. While the TRAN is above the triangle, it really just traded sideways out of it and I wouldn't as yet put too much hope in any presumed upside breakout: Link Be aware that the TRAN is above the triangle, but also that trading right into the apex typically renders the triangle useless as a predictor since any move will then be either a breakout or breakdown.

Jeff Bailey : 5/5/2008 3:28:32 PM

Nymex June Nat. Gas (ng08m) saw a strong bid as weather forecasters see unusually cold temperatures in the weeks ahead and continued caution for an active hurricane season. June contract surged $0.40, or 3.72% to settle at $11.178.

Jeff Bailey : 5/5/2008 3:24:58 PM

Nymex June Unleaded (rb08m) settled up $0.0865, or +2.92% at $3.0529.

Jeff Bailey : 5/5/2008 3:22:32 PM

Nymex June Crude Oil (cl08m) settled up $3.65, or +3.14% at $119.97.

Linda Piazza : 5/5/2008 3:20:07 PM

With the Nikkei closed overnight last night, the USDJPY moved mostly sideways. After our open, it popped back above 105 again, but didn't match Friday's high and never approached the 106.60-ish level that's a 38.2 percent retracement of the long slide off last summer's high. It's been dropping lower since that high reached early this morning and is now 104.78. Its 10-sma is now 104.15. Back on April 11, the USDJPY's fall through its 10-sma to test its 30-sma corroborated the SPX's similar action. Therefore, equity bulls want to see the USDJPY find support on that 10-sma, especially since a rising trendline off the March low is only a little below that moving average. I'm not sure that much is going to happen tonight, with the Nikkei not open, but you never can tell with these currency markets.

Linda Piazza : 5/5/2008 3:13:24 PM

The OEX's 30-minute 9-ema has also been pressuring it lower with that moving average now at about 650.55. The 45-ema has not been as stable support on 30-minute closes for the OEX as for the SPX, but that's currently 649.67.

Linda Piazza : 5/5/2008 3:07:07 PM

The last 30-minute close was again beneath the 30-minute 9-ema.

Jeff Bailey : 5/5/2008 3:06:28 PM

VIX.X 18.91 +4.01% ...

Jeff Bailey : 5/5/2008 3:05:43 PM

Toll Bros. (TOL) $25.00 +4.60% ... trades the $25.00 strike.

Jeff Bailey : 5/5/2008 3:05:12 PM

Bond market closed ...

13-week jumped 8.5 bp to close with a 1.550% yield after Warren Buffett echoed sentiment for Fed to stand pat on any further rate cuts.

5-year fell 2.4 bp to 3.135%, while the benchmark 10-year yield was unchanged at 3.845%. The longest-dated 30-year yield rose 1.6 bp to 4.581%.

Linda Piazza : 5/5/2008 3:00:05 PM

The bond market will close in a few minutes and the nature of trading sometimes changes when it does. We can only hope.

Actually, unless we're going to see a big downdraft--and I don't see any evidence of that yet--I don't expect a big change. While the SPX may bounce, it would have to bounce big before the day turned out any differently than it looks currently, with today's candle part of possible sideways/sideways-down movement towrd the 10-sma.

Linda Piazza : 5/5/2008 2:58:17 PM

The SPX is attempting to rise above the 30-minute 9-ema, with that average now at about 1407.70. It's actually a little above that average as I type, at 1407.77, but it hasn't really pulled free of the 9-ema's resistance yet.

Keene Little : 5/5/2008 2:57:05 PM

With the stronger bounce back up now it's looking like we're not going to get resolution today as to where this market is headed next. I've got to run off to a meeting and will miss the last hour. I'll check back later.

Linda Piazza : 5/5/2008 2:55:08 PM

I don't know about the rest of you, but with what Jim has taught us all about peak oil, I don't particularly want anyone fiddling with the SPR (as per Jeff's 2:45:51 post) just so we can pay a few cents less per gallon for gasoline. Any of you old enough to remember that period in the 70's when we were restricted to going to the pump every other day and when people threw things at gas-guzzling cars at intersections wants to be sure the country has enough reserves.

Jeff Bailey : 5/5/2008 2:45:51 PM

Energy Secretary Bodman saying SPR additions helps protect US. Oil above $120 a "serious issue."

Linda Piazza : 5/5/2008 2:38:37 PM

Now the indeterminate setup is moving into the 30-minute SPX chart. Here's what I see: Link

Jeff Bailey : 5/5/2008 2:32:04 PM

SWC $13.68 +1.40% ... SWC-QW $3.70 x $4.20.

Jeff Bailey : 5/5/2008 2:28:46 PM

Swing trade long establish stop alert! ... for the 100 shares of Stillwater Mining (SWC) $13.67 +1.33% ... at $12.80.

Jeff Bailey : 5/5/2008 2:21:50 PM

02:00 Internals found at this Link

Keene Little : 5/5/2008 2:20:51 PM

The DOW is back down to some pretty firm support by trend lines and Fibs so it's not surprising to see it holding above 12900 so far. The top of a shallow parallel up-channel from January (where price just dropped to this afternoon) and the broken uptrend lines from October 2002 and March 2003 are located between 12900 and 12980. The 50% retracement of the October-January decline is at 12917 and two equal legs down from Friday is at the same 12917. Daily chart: Link

This is why I'm saying the DOW needs to drop below 12900 to tell us something more bearish is happening. Until that happens, today's pullback is just a pullback. But on the daily chart the red candle (so far) is bearish confirmation of Friday's shooting star so it certainly suggests caution for long positions.

Linda Piazza : 5/5/2008 2:20:10 PM

Fed Chairman Bernanke speaks tonight at 8:30 pm ET on mortgage foreclosures, according to a source I'm viewing. Tomorrow morning includes a rate decision by Australia as well as April PMI for the eurozone and U.K. March's eurozone PPI will be released, too.

Linda Piazza : 5/5/2008 2:16:35 PM

Although many news sources listed Japan's Nikkei as up 282.40 points last night, the Nikkei was actually closed last night. That was Friday's closing values. Trading will not occur tonight, either, as Japan's financial markets are closed May 5 & 6 for a Golden Week holiday. I don't see any economic forecasts listed, either, although China's President Hu Jintao is currently on a five-day visit to Japan. I don't see any information about whether currency issues or anything else that might impact our markets are on the agenda.

Linda Piazza : 5/5/2008 2:09:56 PM

The SPX did hit the potential target (and potential support) on the 30-minute chart, with that at 1404.87. Now, it's also set up a pattern of descending under a turning-lower 15-minute 9-ema. That's now at 1406.94. If the SPX can't jump above and maintain 15-minute closes above that, then it may break through that potential support that was just tested and drop down toward 1402.50-1403.

Jeff Bailey : 5/5/2008 2:08:41 PM

ECB's president Trichet thinks there are significant upside risks to global inflation and that central bankers must do their best to anchor people's inflation expectations.

Jeff Bailey : 5/5/2008 1:53:09 PM

Wal-Mart (WMT) $57.08 -0.71% ... Its 12/31/07 close was $47.50.

Jeff Bailey : 5/5/2008 1:51:55 PM

S&P Retail Index (RLX.X) 409.91 -1.84% ... back to trade its 12/31/07 Close

Jane Fox : 5/5/2008 1:52:29 PM

VIX is trading mid range but the AD line is making new daily albeit not supported by the AD ratio making new daily lows. Sorry but once again in the equity markets the best trade today is no trade. Maybe time to switch to daytrading Crude - no lack of excitement over there. Link

Linda Piazza : 5/5/2008 1:51:33 PM

We have now entered the typical stop-running time of day when big money returns from lunch and tests the waters to see whether a dip is met by buying or a bounce by selling. It's often difficult to predict which big money will try--the dip or the bounce--and certainly difficult to predict the outcome. After all, big money doesn't know and is testing to find out, so we must not only be aware of the test but also of what it might or might not show (buying on a dip or selling on a bounce). If big money drives prices lower and there's buying, they know one thing: selling, something else. And they'll act accordingly.

Linda Piazza : 5/5/2008 1:49:07 PM

The SPX looks as if it could get pressured down to 1404-1405 or maybe even 1402.60-1403, but it's looked as if it could be at various times today without being pressured there. So, take the setup for what it's worth.

Linda Piazza : 5/5/2008 1:46:10 PM

Are you afraid that a downgrade in credit rating on either a particular stock or a sector might send stocks and your portfolio's value lower? Want to buy some insurance against that event? The CBOE wants to help. It has a tool for you: the new CEBOs, or credit event binary option. If there's a credit event in a covered entity--if F has a confirmed (by CBOE) failure-to-pay default on an obligation such as a bond, for example--and you have a call CEBO on F, you'll be paid in cash. The CBOE envisions these as a means by which the individual trader/investor can protect against or possibly benefit from a credit event, such as a downgrade of one of the four single-name CEBOs or a sector covered by the basket CEBOs.

There's this little problem, though. Instead of multiples of 100 for each contract, the CEBOs have multiples of 1000. They have long expiration cycles: the ones on F expire in either September 2008 or September 2012, for example. For the sake of argument, let's say you could split the bid/ask on the September 2012 version. You'd pay $44,000 per contract if we make that assumption. The "binary" part of the name comes from the only two outcomes that are possible. If there's a credit event in the form of a confirmed (by CBOE) credit default before the expiration of that option, you collect a hefty $100,000 per contract. If there's not, you collect zilch, and in fact, lose the $44,000 you paid.

Although the current brochure says there are no puts, the webinar I heard yesterday said there were. These would benefit from an acceptable upgrade in credit rating, if I am remembering that correctly.

The basket CEBOs are handled a little differently, with those on the auto sector, the homebuilding sector and the high-yield composite. I'm of course not giving all the information and may have some of it wrong, so you'd need to confirm by going to the CBOE page. You'll find a promo about the CEBOs there. I'm finding zero open interest and zero volume on the ones I've checked so far. Intriguing, but I don't think I want to pay that much for my insurance just yet since I put most of our accounts in cash in October, just before the worst of the downturn.

Jane Fox : 5/5/2008 1:35:52 PM

NEW YORK (MarketWatch) -- Shares of Countrywide Financial Corp. fell more than14% on Monday after an analyst called on Bank of America Corp. to scuttle plans to buy the nation's largest mortgage lender because of the falling value of its loan portfolio.

Short of abandoning the deal outright, Bank of America is almost certain to cut its offer price for Countrywide to as low to $2 a share, from the initial agreement to pay $7 a share, said analyst Paul Miller Jr., of FBR Capital Markets.

"Bank of America should completely walk away from the Countrywide deal, as CFC's loan portfolio will prove a drag on earnings and could force BAC to raise additional capital," the analyst wrote in a research note to clients.

In midsession trading, Countrywide's stock was down 84 cents at $5.14 on volume of nearly 30 million shares. Bank of America lost 76 cents at $39.03.

Jane Fox : 5/5/2008 1:34:00 PM

I'm not sure I would call this getting smoked (please refer to my post from MarketWatch at 1:32) Link

Jeff Bailey : 5/5/2008 1:33:12 PM

The jump in food prices escalates biofuel debate. US and European Union reconsidering the move toward this alternative fuel. UN official says the move toward food-based fuels don't make sense given scarcity of food worldwide.

Jane Fox : 5/5/2008 1:32:09 PM

SAN FRANCISCO (MarketWatch) -- Crude futures climbed to uncharted territory in New York Monday as concerns about supply disruptions in Nigeria and weakness in the U.S. dollar lifted prices past $120 a barrel in electronic trading.

Crude oil for June delivery climbed as high as $120.21 a barrel in electronic trading on the New York Mercantile Exchange. The contract was last up $3.43, or 3%, at $119.75 after peaking at $120 in regular trading.

"Nigerian oil off the market and increasing tensions with Iran seem to be the flavor of the day," said Phil Flynn, a vice president at Alaron Trading.

Nigeria's rebel group Movement for the Emancipation of the Niger Delta, MEND, said Sunday it was responsible for an attack on a Shell oil flow station in the south of the country, according to media reports. Shell confirmed the attack and said that some oil production had been closed down, according to reports.

In recent months, MEND has claimed responsibility for a series of attacks on oil facilities in the Niger Delta.

And "with last week's bullish headlines from the U.K. out of the way, Nigeria is the lingering hotspot the markets will be focusing on," said Edward Meir, an analyst at MF Global, in a research note.

Meanwhile, "the dollar is getting smoked," contributing to oil's rally, said Flynn, in emailed comments.

James Brown : 5/5/2008 1:31:04 PM

Oil refiner Valero (VLO) has announced plans to buy 72 retail gas stations from Albertson's. The deal is expected to close in August.

VLO already operates 5,800 outlets in the U.S., Canada and Caribbean under the brand names Valero, Diamond Shamrock, Shamrock, Ultamar, and Beacon.

Not seeing any reaction in the stock price. VLO is down 1% to $48.89. Rising oil prices squeeze the refiner's margins.

Jeff Bailey : 5/5/2008 1:29:29 PM

Fannie and Freddie say they have seen credit liquidity improvement in secondary mortgage market, but remain cautious as it is still early in the process.

FNM $28.10 -4.74%

FRE $25.13 -7.23% ...

Keene Little : 5/5/2008 1:27:48 PM

It's looking like the techs might lead us lower if the test of the low doesn't hold for NDX and the COMP.

Jeff Bailey : 5/5/2008 1:26:18 PM

Ford Motor (F) $8.29 +0.24% ... #8 most active now. Canadian Auto Workers ratify 3-year contract.

Jeff Bailey : 5/5/2008 1:24:37 PM

Analyst saying the BAC's bid could go as low as $2.00 for CFC.

Jeff Bailey : 5/5/2008 1:23:59 PM

Some news that another attack on Nigerian oil facilities bolstering prices.

James Brown : 5/5/2008 1:21:15 PM

CNBC reporting that UBS expects the U.S. dollar to rally 10% versus the Euro this year.

Linda Piazza : 5/5/2008 1:15:30 PM

The SPX is just stringing along the flattened 15-minute 9-ema, rendering that moving average less useful as a predictor of next movement. This is typical of a consolidation day. We can't guarantee that this will look like a consolidation day by the end of the day, but with the 15-minute 9-ema flattened and RSI on that chart nearly neutral at 48, we certainly can't predict where the SPX goes next from this chart.

Jeff Bailey : 5/5/2008 1:14:35 PM

DIA, SPY, IWM, QQQQ (Montage) at this Link

James Brown : 5/5/2008 12:54:15 PM

Another idea on the coal industry... bulls might want to consider buying the ETF with the symbol KOL.

Options are available on KOL and this ETF is breaking out over resistance near $46.00.

James Brown : 5/5/2008 12:52:13 PM

Steel stocks continue to rally...

United States Steel (X) is up 1.8% to a new high at $160.00.

AKS +2.8%
NUE +2.3%
MT +1.2%
STLD +3.1%
PKX +1.09%
CMC +1.4%

James Brown : 5/5/2008 12:46:54 PM

VisionChina Media (VISN) is up more than 10% to a new high at $17.63. Shares had been fighting resistance near $16.00 for the last three weeks.

This stock IPO'd back in December 2007 around $8.00. This is an advertising company in China. It does have options available.

James Brown : 5/5/2008 12:43:15 PM

A couple of more coal stocks...
CNX +5.2% to $88.73, nearing resistance at $90.00
MEE +7.59% to $56.82. This is a breakout to a new high.

FYI: JRCC reports earnings tomorrow morning.. Estimates are for a loss of 50 cents a share.

Linda Piazza : 5/5/2008 12:42:46 PM

Not a particularly fun day, is it? This is the nature of these kind of days. That's the good thing about determining a possible scenario before the day begins, so that you avoid believing too strongly in any setups and require not just good setups but stellar ones.

Jeff Bailey : 5/5/2008 12:43:35 PM

Chipotle Mexican Grill (CMG) $98.22 +0.37% Link ... after kiss of WKLY S1 ($95.93). WKLY Pivot ($99.18)

James Brown : 5/5/2008 12:40:20 PM

Additional coal stocks...

BTU +2.2% to $63.81
ACI +4.3% to $61.85
FDG +3.3% to $65.78
JRCC +11.8% to $26.94

James Brown : 5/5/2008 12:39:23 PM

Coal stock Walter Ind. (WLT) is up 13.4% to a new high at $82.85 after having its price target upgraded to $150 this morning. The breakout over resistance at $75.00 is definitely bullish but I wouldn't chase it here.

Jeff Bailey : 5/5/2008 12:36:29 PM

Sector Losers ... Airline 23.48 -3.29%, Retail 410.34 -1.74%, Regional Banks 253.03 -1.62%, Insurance 328.77 -1.39%

Jeff Bailey : 5/5/2008 12:34:42 PM

Sector Winners ... Gold Bugs 409.22 +2.42%, Home Construction 382.40 +1.84%, AMEX Nat. Gas 681.51 +1.78%, CBOE Oil 921.95 +1.44%, Oil Service HOLDRs 199.12 +1.37%

Jeff Bailey : 5/5/2008 12:30:30 PM

12:00 Internals found at this Link

Linda Piazza : 5/5/2008 12:30:29 PM

Potntial SPX support at 1404.30 on 30-minute closes. For the OEX, that's 649.25.

James Brown : 5/5/2008 12:30:09 PM

The XAL airline index is reversing under the 25.00 level. The XAL is currently down 3.3% as crude oil hits new highs.

James Brown : 5/5/2008 12:27:06 PM

Most of the fertilizer stocks are inching higher....and out performing the broader markets. MON and TRA appear to be exceptions.

The recent IPO in Intrepid Potash (IPI) is up 4.6% to $46.85.

James Brown : 5/5/2008 12:21:53 PM

Arcelor Mittal (MT), a steel maker, is breaking out over the $90.00 level. We added MT to the OI play list as a call candidate this weekend.

Keene Little : 5/5/2008 12:21:10 PM

The market is running in slow motion (either that or I'm just anxious to see how this pullback develops). So far the bounce off this morning's lows looks like a correction which means we should proceed lower. But it's not clear whether the bounce will get bigger and take more time before tipping back over or will head lower from here.

Linda Piazza : 5/5/2008 12:17:20 PM

The TRAN, unlike the SPX, Dow, and OEX this morning, did not reach a new low below Friday's. As I began commenting last week, the TRAN has been acting a bit weird, zooming a little bit of everywhere, but it may not be coiling. As I type, it's headed up, having broken through potential resistance at its 15-minute 9-ema, now at 5279.60. The TRAN is 5291.05 as I type, with potential resistance near 5300-5301, but will it get far? I'm not sure.

James Brown : 5/5/2008 12:16:40 PM

Chinese search engine giant Baidu.com (BIDU) is up almost $15 to $376.57 and close to breaking resistance near $380 as traders buy the dip near its rising 10-dma.

James Brown : 5/5/2008 12:13:28 PM

Defense contractor L-3 (LLL) is showing weakness with a 1.4% drop toward $110 and its rising 50-dma. A bounce from $110 might be a short-term bullish entry point. chart: Link

Linda Piazza : 5/5/2008 12:03:54 PM

The SPX is pausing at/near potential resistance on both 15- and 30-minute closes, with the just-completed 30-minute close beneath resistance that extends up to about 1409.15 on 30-minute closes. The SPX is rising again to test that potential resistance, and we're in the wait-and-see mode. That's not unusual for this time of day or for what we see happening on the daily charts--that potential sideways/sideways down pattern that may have begun Friday.

Jeff Bailey : 5/5/2008 12:00:22 PM

Pilgrims Pride (PPC) $23.02 -4.48% Link ... World's largest chicken producer weighed lower after earnings. Company cites higher prices for grain and feed for $111.4 million loss.

Jeff Bailey : 5/5/2008 11:55:15 AM

Analysts chiming in with doubts regarding a DT/S merger as it would likely face antitrust approval.

Jeff Bailey : 5/5/2008 11:53:44 AM

The latest Lundberg survey of 7,000 gas stations revealed that the national average for self serve regular gasoline rose about $0.15/gallon in the last two (2) weeks to $3.62/gallon. Regular gasoline prices have risen $0.55/gallon this year.

Jeff Bailey : 5/5/2008 11:49:09 AM

Most Actives ... YHOO $24.61 -14.16% Link , MSFT $29.72 +1.64% Link , QQQQ $48.64 -0.16% Link , CSCO $26.31 -1.64% Link , SPY $140.87 -0.44% Link , ORCL $21.60 +0.41% Link , INTC $23.30 -0.59% Link , AAPL $184.41 +1.91% Link , JAVA $12.55 -0.71% Link , BAC $39.14 -1.63% Link

Linda Piazza : 5/5/2008 11:48:31 AM

If the SPX can manage 30-minute closes above about 1409, that potential drop mentioned in my 11:43:48 post becomes less likely.

Linda Piazza : 5/5/2008 11:43:48 AM

Although it's still only in the "possible" category and not yet in the "probable" one, it's looking possible that the SPX will roll back down toward 1404 and perahps even 1401.50-1402.50.

Linda Piazza : 5/5/2008 11:33:15 AM

The SPX now has potential resistance up to 1409 on 15-minute closes. For the OEX, that's up to 651.60.

Jane Fox : 5/5/2008 11:36:56 AM

THat is if you took a long at support. Crude may be bouncing back and forth from this high to the $110/bl support for a while now waiting for the MACD to catch up.

Jane Fox : 5/5/2008 11:21:42 AM

MACD is telling me though this market will not be making sustainable new highs so I would bailing on any long positions here.

Jane Fox : 5/5/2008 11:20:32 AM

Crude new all time high today is $120.21. This is a fun market to daytrade.

Jane Fox : 5/5/2008 11:19:00 AM

Crude is now back to $120.00. Hopefully some of you took the USO long back when Crude was $110.00/bl which was a huge support.

Linda Piazza : 5/5/2008 11:16:29 AM

At the 1404.55 low of the day, the SPX was approaching/testing the former descending trendline off the October SPX high. Late last week, the SPX broke up through that trendline, but it paused Friday and is now coming back for a retest. While that's normal enough, equity bulls don't want to see the SPX break back and maintain values back below that trendline. They would rather see that gentle sideways/sideways-down movement toward a rising 10-sma, with support found on top of that descending trendline.

Keene Little : 5/5/2008 11:13:17 AM

The pullback from Friday's high for the DOW is currently only a 3-wave move and is approaching potential support near 12930-12940 (trend line and previous highs). Two equal legs down from Friday morning is at 12918. If this pullback is merely a correction to the uptrend then we should see support hold and a new rally leg start. A break below 12900 would be a heads up that we've got something more bearish playing out.

Jeff Bailey : 5/5/2008 11:09:56 AM

Shares of Countrywide Financial (CFC) $5.27 -11.87% are notably weak this morning. Some analysts commenting that Bank of America (BAC) $38.97 -2.06% is likely to renegotiate a much lower price as BAC could see writedowns between $20-$30 billion from CFC acquisition and its mortgage loan losses.

Jane Fox : 5/5/2008 11:09:44 AM

VIX to new daily highs now so the bears still have the ball today. AD line is once again falling and now making new daily lows.

Jane Fox : 5/5/2008 11:08:43 AM

The DOW cash market is now testing support at 12900 or better yet the support zone at 12750 to 12900. The bulls are in control now but they are weak and it is not surprising they did not have enough power behind them to sprint forward once they broke through resistance. Link

Jeff Bailey : 5/5/2008 11:06:02 AM

US Treasury to sell $24 Billion in reopened 4-week bills tomorrow.

James Brown : 5/5/2008 11:03:07 AM

OI call play Joy Global (JOYG) is up 2.1% to $78.59 after Lehman Brothers upgraded their price target on the stock from $80 to $88.

The intraday high for JOYG is $78.94. Our first target is the $79.50 mark.

LEH also upgraded shares of rival Bucyrus (BUCY) raising the price target to $140. BUCY is up 3.2% to $134.29.

Jeff Bailey : 5/5/2008 11:03:06 AM

At 10:00 AM EDT ... CRY was 411.28.

Jeff Bailey : 5/5/2008 11:02:39 AM

At 10:00 AM EDT ... DXY was 73.32.

Jeff Bailey : 5/5/2008 11:01:29 AM

BIX.X 253.31 -1.51% ... WKLY Pivot (256.14) violated. WKLY S1 (247.13) and MONTHLY Pivot (243.76) in play.

Linda Piazza : 5/5/2008 10:59:28 AM

Traders should now be considering potential vulnerability to 1404.30 and possibly 1401-1402 on the SPX. Bears should know in advance how they'll treat a test of 1401-1402, if that should occur. If we're to having the sideways-to-sideways-down version of a pullback to the 10-sma, then the SPX might chop around, perhaps bouncing strongly from support.

Jeff Bailey : 5/5/2008 10:57:25 AM

US Dollar Index (DXY) 73.453 -0.06% (30-minute delayed) ... WKLY Pivot (73.21) untested Sunday and so far today.

Jeff Bailey : 5/5/2008 10:56:00 AM

10-year Yield ($TNX.X) ... up 1.2 bp at 3.857%. WKLY Pivot (38.05, or 3.805%) untested.

Jeff Bailey : 5/5/2008 10:54:59 AM

RUT.X 724.29 -0.19% ... has slipped below its WKLY Pivot (725.06)

Jeff Bailey : 5/5/2008 10:54:06 AM

SPY $140.99 -0.37% ... WKLY Pivot not yet tested. ($140.71)

Jeff Bailey : 5/5/2008 10:53:09 AM

VIX.X 18.94 +4.18% ... slips back below its WKLY Pivot.

Jeff Bailey : 5/5/2008 10:51:54 AM

Auto workers at GM plant in Kansas City went on strike today.

Linda Piazza : 5/5/2008 10:50:30 AM

The SPX's 15-minute 9-ema is now 1411.35; the OEX's, 652.62.

Jane Fox : 5/5/2008 10:49:56 AM

TRIN is a neutral 0.99.

Jane Fox : 5/5/2008 10:49:02 AM

Nice to have the VIX back, if you are bearish that is. VIX is now hovering at daily highs but not breaking to new daily highs. AD line is well below 0 but climbing. No clear direction from the internals I'm afraid.

Linda Piazza : 5/5/2008 10:49:39 AM

Remember as you're wrangling with the markets today and with your expectations for them that one possible outcome for the day, as per my 9:31:38 post, is that the SPX has begun a sideways to sideways-down pullback to the daily 10-sma or my preferred 9-ema. The 10-sma, for those who watch that, is now 1394.75.

That would still fit in the bullish category of behavior, if that's all that happened, if that support held. Perhaps it wouldn't even be too disturbing, although a bit more worrisome, if the SPX fell all the way to its 30-sma, now at 1368, as long as that held on daily closes. However, a faster decline toward that 10-sma or even 30-sma can't yet be precluded, and wouldn't be as desirable for those hoping for an eventual bullish outcome. It goes without saying that a decline below the 30-sma wouldn't be desirable at all.

Linda Piazza : 5/5/2008 10:44:28 AM

The OEX is attempting to steady at potential Keltner support near 651.45. It needs to do so or it risks setting a potential downside targt near 648-649.

James Brown : 5/5/2008 10:40:01 AM

Marvel Enterprises (MVL) is up 7.2% to a new all-time high at $32.42 following a better than expected opening weekend for its new movie Iron Man and a strong earnings report.

Estimates for Iron Man were pretty wide from $45 million to an $80 million open. It looks like Iron Man garnered more than $100 million in its first three days.

The company reported earnings this morning that were 15 cents better than expected. Management raised its earnings guidance for 2008.

A dip back toward prior resistance in the $31 or $30 region might be worth checking out as a bullish entry point. FYI: The P&F chart is bullish with a $42 target.

Jane Fox : 5/5/2008 10:38:22 AM

The industrywide outage affecting the delivery of market index data has been resolved.

Linda Piazza : 5/5/2008 10:36:29 AM

My Keltner charts suggest a potential upside target for the VIX of 19.38-19.42, as long as it maintains 15-minute closes above 18.93. The VIX is currently 19.11. This upside target isn't a given, but it's certainly a possibility. If bearish, I would have profit-protecting plans in place for a test of that 19.38-19.42 zone as it could be a point from which the VIX rolls down again and equities bounce.

Keene Little : 5/5/2008 10:33:21 AM

It looks like USO is going to give us a new high and the correct wave count fo its rally is the pink count that I've been showing on its chart. Fib projections for the 5th wave up (in the move up from March) are at 96.13 (equality with the 1st wave) and then 98.62 (larger degree 5th wave equaling the 1st wave). Just above those is the top of a parallel up-channel near 99.30. This is an update to the chart from last Wednesday's newsletter. Link

Linda Piazza : 5/5/2008 10:33:10 AM

If the SPX drops through this support zone currently being tested and doesn't quickly bounce, it risks dropping toward 1404.26-1405.22 or maybe even toward 1401-1402. The SPX is 1408.64 as I type, or at least I think it is. The level seems to have frozen, and, given, what's happening today, I'm not sure that's current any longer.

Linda Piazza : 5/5/2008 10:29:43 AM

A/D line now -345, at potential support and just a little below midway down its daily range so far.

Linda Piazza : 5/5/2008 10:28:58 AM

OEX potential support on 15-minute closes near 651.50, although there's still time for the OEX to bounce back above the 15-minute 9-ema now at 653 before this 15-minute period closes. The OEX is 652.35.

Linda Piazza : 5/5/2008 10:27:25 AM

SPX potential support on 15-minute closes now 1408.32-1409.42. Bulls don't want that to break and the break be sustained on 15-minute closes.

James Brown : 5/5/2008 10:26:23 AM

Crude oil continues to climb....

Up $2.72 to $119.04 a barrel. Nearing its highs around $120.

Linda Piazza : 5/5/2008 10:24:53 AM

Subscriber A.W. writes with a caution that I would second: He says that he's not sure that the difficulties this morning were/are confined to index quotes. He is watching a particular option montage and notes that "the numbers freeze with bids above asks, etc." He warns, "Be careful out there," and I do, too.

James Brown : 5/5/2008 10:23:23 AM

International market check...

China's Shanghai market.. +1.8%
Hong Kong's Hang Seng.... -0.2%
Japan's NIKKEI index .... +2.0%

Europe...
French CAC 40... +0.3%
German DAX ..... +0.04%
London FTSE 100. +2.1%

Meanwhile...
Brazil's Bovespa is up another 1% to yet another new high! This market has been soaring the last few days.

Jeff Bailey : 5/5/2008 10:22:14 AM

10:00 Internals found at this Link

Linda Piazza : 5/5/2008 10:22:07 AM

Okay, I now have charts for the SPX. The S/R levels will be approximate since I don't have candles for early action. The SPX is now dropping toward potential Keltner support on 15-minute closes that is now from 1408.50-1409.60. I caution that, so early in this 15-minute period, it's possible that it will yet bounce back above the 15-minute 9-ema, now at 1412.54, ending the period above that potential support. The SPX is 1411.76 as I type, having just bounced a little as I typed this post.

Keene Little : 5/5/2008 10:21:46 AM

As soon as ES closed this morning's gap it sold off sharply. So that's a bearish sign. Techs are selling right off too. We don't know yet whether the market will chop sideways or start lower again but so far I'm not seeing enough evidence to turn me even short term bullish.

Linda Piazza : 5/5/2008 10:19:57 AM

A/D line now -223, dropping quickly.

Jane Fox : 5/5/2008 10:22:03 AM

Opps I need to amend that last post, the Russell 2000 futures (ER2) is trading above its ON high as well.

Jane Fox : 5/5/2008 10:16:39 AM

Here are the overnight charts and as you can see only the NDX futures (NQ) is trading above its ON high. Link

James Brown : 5/5/2008 10:16:12 AM

Not seeing any news but Shoe Carnival (SCVL) is up more than 2% and flirting with a bullish breakout over resistance near $15.00 and its 200-dma. The P&F chart is bullish with a $19.50 target.

Linda Piazza : 5/5/2008 10:14:01 AM

SPY now 141.52, just off its new high of the day. The A/D line has continued climbing into that potential resistance zone, too. The TRAN, however, has not created a new high of the day. Watch the A/D line as it tests resistance from +95 to +200 on 15-minute closes. It's +96 as I type. Equity bulls don't want to see a strong rollover here.

Linda Piazza : 5/5/2008 10:11:16 AM

The Dow still tries to steady near 13000, near support that on a Keltner basis is analogous to the SPX's 1406.60-1408 level, or was at the open. Those lines would have moved a little by now. The SPY is outperforming the Dow, however, by Keltner measures. The analogous SPY level is 140.56-140.84, and the SPY is currently 141.30, bouncing again from its latest test of the 15-minute 9-ema. Can we presume the SPX would be doing the same? I'm not sure how much other factors might be playing into this, but I do see the TRAN also bouncing from its 15-minute 9-ema test.

As far as I can see from these charts, nothing particular has been settled as yet. Bulls might take heart from the TRAN's actions, but it's all still within the context of a possible choppy consolidation day. The A/D line is charging higher, though, and is near its high of the day, about to test possibly strong resistance.

James Brown : 5/5/2008 10:08:00 AM

Research In Motion (RIMM) is up 2% to $134.51. The stock is quickly approaching potential resistance at its all-time high of $137 from November 2007.

Keene Little : 5/5/2008 10:05:56 AM

Looking at the equity futures, techs (NQ) wasted no time in closing this morning's gap down (it wasn't much of a gap) and ES could be next (1415.75) if the bulls can push it a little higher. YM is the laggard this morning (gap close at 13061).

Jeff Bailey : 5/5/2008 10:05:34 AM

Majors recover earlier losses on ISM services.

Jane Fox : 5/5/2008 10:04:43 AM

April ISM services above consensus 49.4%

April ISM services index 52.0% vs 49.6 March

Linda Piazza : 5/5/2008 10:03:49 AM

The SPY popped up on the ISM number, but is having a little trouble so far maintaining that higher level. Next potential resistance is 141.65 with the SPX currently 141.30, but it doesn't look inclined to test that resistance just yet.

Jeff Bailey : 5/5/2008 10:02:55 AM

US ISM April Non-Mfg Composite Index 52.0 ... Expected 49.8.

James Brown : 5/5/2008 10:02:46 AM

April ISM services --- 52.0, above the 50.00 level, which actually shows expansion.

Linda Piazza : 5/5/2008 10:01:47 AM

The Dow is not following the SPY's example. It ran up and hit the 15-minute 9-ema and was bounced right back down to that support near 13000, analogous to the SPX's 1406.60-1408 zone.

James Brown : 5/5/2008 10:01:25 AM

Shares of Apple Inc. (AAPL) are up 1.7% to $184 and confirming their recent breakout over $180.

This morning an analyst firm has raised their price target on AAPL from $200 to $220. The stock has resistance at its all-time (December 2007) highs near $200

Linda Piazza : 5/5/2008 10:00:20 AM

In the absence of any quotes on the SPX, I'm going to be watching the SPY. It's not a perfect proxy, especially since some might be using it as a sort of hedge in the absence of other information, but at least it's something. This morning, the SPY reached down and tested the Keltner support level analogous to the SPX's 1406.60-1408 level. As I expected, seeing what the TRAN is doing, the SPY has bounced from that potential support. It has not yet, of course, closed a 15-minute period above the 9-ema, now at 141.13. It's now 141.25, pulling back from the 141.35 high for this 15-minute period, but it is likely to close above the 9-ema in a couple of minutes. That still keeps the SPY within the choppy consolidation zone from Friday afternoon.

Jeff Bailey : 5/5/2008 9:58:38 AM

BARE $19.98 -3.61% ... trades the $20 strike.

James Brown : 5/5/2008 9:57:43 AM

CNBC saying that Bank of America (BAC) might renegotiate or walk away from its Countrywide (CFC) acquisition if CFC's "fair value" (of its mortgage portfolio) is less than expected...

One analyst firm has downgraded their price target on CFC from $7 to $2. Currently CFC is trading down 9.5% to $5.41.

Jeff Bailey : 5/5/2008 9:57:10 AM

Some chatter that energy prices seeing bullish action from weather forecasts.

Jane Fox : 5/5/2008 9:56:43 AM

That was a message from Tradestation.

Linda Piazza : 5/5/2008 9:56:42 AM

This is one of those days when I'm glad I trade the kind of trades I do, those far OTM credit spreads and/or condors.

Jane Fox : 5/5/2008 9:56:08 AM

Several market indices, such as the Volatility Index ($VIX.X), S&P 500 Index ($SPX.X and $INX), S&P 100 Index ($OEX.X and $OEX), and the Russell 2000 Index ($RUT.X and $IUX) are experiencing an industrywide outage. We will be providing more information as it becomes available.

Jane Fox : 5/5/2008 9:56:03 AM

OMAHA, Neb. (MarketWatch) -- Berkshire Hathaway will consider investing in the insurance business of U.K. banking giant Royal Bank of Scotland and is close to buying a medium-sized company in the country, Chairman Warren Buffett said Sunday. A Berkshire unit (BRKA:berkshire hathaway inc del cl a News, chart, profile, more Last: 133,600.00-300.00-0.22% 4:00pm 05/02/2008 Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: BRKA 133,600.00, -300.00, -0.2%) (BRKB:berkshire hathaway inc del cl b News, chart, profile, more Last: 4,448.00-12.00-0.27% 4:01pm 05/02/2008 Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: BRKB 4,448.00, -12.00, -0.3%) has also bought portfolios of subprime mortgages and has frozen resets that were due to send interest rates on those loans higher, Buffett reported. Still, the billionaire investor warned that housing market weakness isn't over yet and predicted more losses for banks, while noting that the U.S. is in a recession. Buffett and Vice Chairman Charlie Munger were speaking at a press conference a day after 31,000 Berkshire shareholders flooded into Omaha, Neb., eager to hear how the credit crunch is affecting Berkshire's businesses, the stock market and the economy.

Jeff Bailey : 5/5/2008 9:55:41 AM

US Oil Fund (USO) $95.48 +2.22% ... gaps above its 04/22/08 futures expiration close.

James Brown : 5/5/2008 9:54:32 AM

Oil services stock Tidewater (TDW) is down 8.2% to $59.64 after reporting earnings this morning that missed analysts' estimates.

The OSX oil services index is actually up this morning...

Linda Piazza : 5/5/2008 9:52:38 AM

For those of you who are getting SPX quotes, here's how the short-term setup was aligned as of this morning's open, before price movement started impacting it. The SPX had tentative short-term support on 15-minute closes at 1406.60-1408.35. I see the Dow testing the analogous support and attempting to steady there. The TRAN, however, is a different matter. The TRAN dropped through that support and then bounced strongly so that it closed its first 15-minute period back above the 9-ema, now at 5301.20. The TRAN has been a bit crazy, lately, but I would not expect the SPX, Dow, and OEX to head too far in one direction if the TRAN is heading too far in the opposite. Either they're going to pull the TRAN back or it's going to at least steady them.

Jane Fox : 5/5/2008 9:52:05 AM

Crude's high so far today is $118.99.

James Brown : 5/5/2008 9:51:38 AM

Homebuilder Hovnanian (HOV) reported preliminary results this morning. The company said that "deliveries" of new homes fell 21% from the same period a year ago. Net contracts fell 29%. Its backlog fell 54% to 3,577 homes.

On the positive side HOV did say they reached positive cash flow this quarter, which was earlier than expected.

The stock is up almost 2% to $11.93 and bouncing from its trendline of higher lows.

Linda Piazza : 5/5/2008 9:48:55 AM

Bloomberg's crawl is also not getting the correct SPX figures.

Jeff Bailey : 5/5/2008 9:47:45 AM

10-days until May Op-Ex (5/16/08)

Jeff Bailey : 5/5/2008 9:46:26 AM

BARE $20.17 -2.70% ... URYQX $2.30 x $2.60 ...

Linda Piazza : 5/5/2008 9:46:13 AM

Subscriber A.W. notes that the difficulty obtaining quotes for the SPX and OEX appears to be vendor specific. Tradestation does have data and charts, but his brokerage, different than mine, doesn't. Thanks, A.W.

James Brown : 5/5/2008 9:44:25 AM

Over the weekend, Warren Buffett said he believes the housing market slump won't be over any time soon (shocking!) and that he expects more trouble (a.k.a. losses) for the banking sector.

Jane Fox : 5/5/2008 9:43:17 AM

I have no VIX this morning.

Jane Fox : 5/5/2008 9:42:18 AM

AD line opens at -573

Jeff Bailey : 5/5/2008 9:43:31 AM

Berhkshire Hathaway (BRK.A) $130,500 -2.32% Link ... slips back under its conventional 19.1% (see Friday's MM)

Jeff Bailey : 5/5/2008 9:39:47 AM

Swing trade filled alert! for the URY-QX $2.05 x $3.20.

BARE $20.51 -1.06% ...

Linda Piazza : 5/5/2008 9:39:51 AM

CNBC's crawl is also quoting Friday's close for the SPX.

James Brown : 5/5/2008 9:39:02 AM

YHOO is down 18.7% to $23.30.... at least two analyst firms have downgraded the stock to a "sell" this morning.

Jeff Bailey : 5/5/2008 9:37:23 AM

Swing trade put adjustment alert! ... for the Bare Escentuals BARE May $22.50 Put (URY-QX) ... Cancel the order to sell for $2.35 and replace with an order to sell for $2.00.

BARE $20.88 +0.72% ...

URY-QX $1.85 x $2.10.

Linda Piazza : 5/5/2008 9:37:11 AM

Whatever problem my charting service is having with SPX quotes, my broker's feed is also having.

James Brown : 5/5/2008 9:36:50 AM

Biotech stock United Therapeutics (UTHR) continues to rally following Friday's bullish breakout over $90.00 and its 100-dma.

Today's rally (+1.3%) is a breakout over its trendline of lower highs dating back to last December.

James Brown : 5/5/2008 9:35:25 AM

Bullish breakout in progress on steel-maker POSCO (PKX). This stock had been consolidating sideways under resistance near $125 and under its long-term trendline of resistance dating back to the October 2007 highs.

PKX is up 0.58% to $125.49. OI's suggested entry point to buy calls is at $125.55.

Jane Fox : 5/5/2008 9:35:14 AM

Now crude is another story. Crude bulls are not feeling any pain today. Link

Linda Piazza : 5/5/2008 9:34:44 AM

Keltner outlook on the A/D line: The A/D line opened in the lower or bearish half of the Keltner channels on the 15-minute chart. It looked as likely to drop toward -820 as it did climb into the next resistance, at about +265 to +315 and, stronger, at +500 to +650. The A/D line is currently -253.

Jane Fox : 5/5/2008 9:34:22 AM

Gold has broken support and I am flat. I still think this market will rally but I will need proof before I jump back in. If Gold breaks above the 870 support, now turned resistance, it will probably have to retest that level before we can be comfortable taking another long and even at that I would only stay long until it reached the big resistance at 940-960. Link

Linda Piazza : 5/5/2008 9:33:10 AM

For some reason, my intraday SPX chart is not updating just yet, and neither is my OEX chart.

James Brown : 5/5/2008 9:32:23 AM

A little weakness in the U.S. dollar has the Euro ticking higher in response.

The FXE Euro ETF is up about 68 cents to $154.80. Look for potential overhead (short-term) resistance in the $155-156 region.

Not seeing any pre-market action in the FXY Yen ETF, which had fallen to its 100-dma on Friday.

Linda Piazza : 5/5/2008 9:31:38 AM

SPX futures are well below fair values this morning. The SPX has begun a pattern that typically means that we can expect at least a few days' sideways/sideways down movement into the 10-sma (or 9-ema, which is my preference to watch), with that 9-ema now at 1394.21 but still rising. Then we see what happens, if the SPX bounces from that or needs to pull back more strongly, perhaps toward 1388-1389 or maybe even 1368-1369.

This pattern does not always repeat. We saw the pattern apparently begin on the 4/16 and 4/17 pair, only to see the SPX zoom up again the next trading day rather than continue the sideways movement. However, even in the strongest rally times, the SPX tended to follow this pattern, and we're still not sure this is the strongest of rally times. I'm still keeping my portfolio of trades cautious about the possibility of sudden and/or steep downturns. Therefore, until and unless the SPX begins maintaining daily closes above about 1419, I'll be wary of downturn potential at least toward that rising 9-ema.

For today, though, that may just mean a consolidation-type day.

Keene Little : 5/5/2008 9:30:17 AM

The stock market will open lower but near the top of the sideways trading range in overnight trading following the spike down just before 9:30 PM. A test of the overnight highs would close the gaps so that will be an important test.

Jeff Bailey : 5/5/2008 9:31:17 AM

Euro CurrencyShares (FXE) $154.12 Link ... seeing 850,000 crossed pre-market. #8 most active pre-market. Don't see this that often.

James Brown : 5/5/2008 9:29:19 AM

Looks like MO and PM might be inching higher after Friday's news that they are raising prices on several cigarette brands.

Jeff Bailey : 5/5/2008 9:25:58 AM

Some speculation/reports that Deutsche Telecom (DT) is mulling a bid for Sprint Nextel S.

Sprint (S) went out at $7.89 on Friday; ticking $8.60 pre-market.

James Brown : 5/5/2008 9:24:16 AM

When I said I was surprised that YHOO wasn't trading lower... I meant I was surprised it wasn't trading around $20 or $19...

YHOO was trading close to $19 prior to the MSFT bid.

James Brown : 5/5/2008 9:22:17 AM

Crude oil now up over $1.00 to $117.35.

It looks like we will be stopped out of our USO put play today. Our target had been $88.50 and the USO hit $88.89 on Thursday before bouncing.

Jeff Bailey : 5/5/2008 9:22:07 AM

I've got YHOO $23.10, down $5.57 from Friday's close.

James Brown : 5/5/2008 9:20:30 AM

MSFT and YHOO rival Google (GOOG) is also set to open higher. GOOG is trading up about $19.00 to $600.00.

One firm raised their price target on GOOG to $675 this morning.

Another firm, Goldman Sachs (GS), just raised their price target on GOOG to $650.

James Brown : 5/5/2008 9:18:10 AM

Microsoft (MSFT) is up less than a dollar.

MSFT poised to open about 75 cents higher around $30.00.

James Brown : 5/5/2008 9:16:47 AM

I'm surprised that Yahoo (YHOO) isn't trading lower.

The stock closed at $28.67 on Friday. Following the MSFT news that they are pulling their bid... YHOO is now down several points and trading around $23.00 in the pre-market hours.

James Brown : 5/5/2008 9:14:07 AM

Crude oil is up about 55 cents to $116.87/barrel.

Jane Fox : 5/5/2008 9:04:25 AM

At 6:30PMET yesterday right after the futures markets opened (they open at 3:00PMET on Sunday) something spooked them and they took a huge spike downwards. Obviously whatever it was, was deemed to be unimportant for they recovered quickly and the rest of the overnight session has being sideways. Link

Jane Fox : 5/5/2008 8:50:50 AM

Dateline WSJ - Yahoo Inc. Chief Executive Jerry Yang didn't really want Microsoft Corp. to buy his company. By Saturday, Microsoft CEO Steve Ballmer didn't want that either, leaving both technology giants facing fundamental questions about their futures.

The failed courtship leaves Microsoft with limited options for quickly expanding its presence online. However, it might not close the door to the software maker's pursuing another bid for Yahoo down the road.

In a letter to Mr. Yang Saturday in which he withdrew Microsoft's acquisition offer, Mr. Ballmer cited a divide over price, saying Microsoft had been willing to raise its offer for Yahoo to $33 a share, or about $47.5 billion, and Yahoo demanded at least $4 a share more.

Microsoft's pursuit of Yahoo was among the latest moves in the scramble by technology and media companies to capture the flood of advertising dollars moving online and to block Web powerhouse Google Inc. from extending its dominance in online-search advertising.

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