Here Are Two Important Resistance Levels

September 29, 2003
Vincent Mao

Stocks are
higher this midday. After last week’s
slide which put stocks in oversold conditions, the major indices are staging a
modest rally. Rising consumer spending as well as upbeat comments from the
Semiconductor Industry Association are helping to boost the markets today.
Consumer spending in August rose for a fourth consecutive month. Tech issues are
showing outperformance once again after the Semiconductor Industry Association
said that worldwide chip sales rose for the sixth straight month in August. Last
week’s damage has the Dow back below support from its long-term trendline drawn
from the May 20, 2001 high on its weekly chart. That trendline now acts as
resistance at approximately 9400. The S&P is now also facing important
resistance at the 1015 level.

In economic news, Personal
Income in August rose by 0.2% vs. expectations of a 0.3% rise. Personal
Spending in August rose by 0.8% as expected.

The 10-year U.S. Note
is +050 at 113 215.

The dollar is -0.81 at
93.44.

Gold is +1.60 at 383.50.

Crude Oil is +0.31 at
28.47.

Volume is 671,000,000 on
the NYSE, and 936,000,000 on the Nasdaq.

Market breadth is positive,
with NYSE advancing issues over declining issues by 1.73 and up over down volume
by 1.63. Nasdaq advancing issues over declining issues at 1.23, and up volume
over down volume at 3.03.

Top Dow stocks are:

Stocks in the news:

Apple Computer
(
AAPL |
Quote |
Chart |
News |
PowerRating)
is higher by more than 1.6% after the company received an upgrade from Lehman
Brothers. The firm upgraded the company form “equal weight” to “overweight”
based on a number of factors. First, Lehman cited strong back-to-school demand.
Second, the firm expects revenues to grow from Apple’s iMusic service. Lastly,
Lehman believes that Apple is at the beginning of a “significant” PowerMac
upgrade cycle.

Computer Sciences
(
CSC |
Quote |
Chart |
News |
PowerRating)
is higher by 3% after the company won a $1.1 billion contract from the US Army.
The El Segundo, Calif.-based company will provide the US Army Aviation Center in
T. Rucker, Ala., with simulator-based flight training and other related aviation
training activities.

eResearch Technology
(
ERES |
Quote |
Chart |
News |
PowerRating)
is higher by 4.4% after the technology and services company raised its 2004
outlook. Due to an increase in recent contracts as well as the announcement of a
$36 million franchise agreement, the company now expects 2004 revenues and
earnings to be between $96 million to $98 million and 92 cents to 94 cents a
share, respectively. Previously, the firm had expected revenues between $87
million to $89 million and earnings of 82 to 84 cents a share.

Finnish cell phone maker
Nokia
(
NOK |
Quote |
Chart |
News |
PowerRating) is higher by 3% as its shares are benefiting from a positive
Barron’s article. The article cited that Nokia is facing huge competitive
pressures such as decreasing market share as well as lower operating margins.
However the shares are trading at a low PE and the company has $10 billion in
cash. The article also cited that the company is poised to benefit from
increasing cell phone markets in China, Russia, and India. In addition will soon
be entering the gaming business with its hand-held “N-Gage” portable gaming
device.

Research In Motion
(
RIMM |
Quote |
Chart |
News |
PowerRating)
is higher by 7% after the maker of the popular Blackberry wireless devices
reported better-than-expected quarterly results. Excluding litigation charges,
the company earned 10 cents a share, or 2 cents better than estimates. Revenues
jumped 71% to $125.7 million.

If you have any comments or
questions, please feel free to email me.

Vincent Mao

vincentm@tradingmarkets.com

Here Are Two Important Resistance Levels

BUY THE FEAR, SELL THE GREED

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