The Key Level To Watch On The S&P…

Today’s markets opened to a big surprise, another
Accounting scandal! The markets are in decline on news of bookkeeping
distortions by Vivendi Universal
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, the latest in an ever-growing
number of corporate scandals that has helped drag the Nasdaq Composite
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to five-year lows. Now that the 1500 level has been broken, the
1300 level is the next area of major support.

The S&P 500
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has now
dropped below the September lows and is trading at the levels of 1998. We are
now testing significant support levels at 944.75.

The September 10-year Treasury
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note rose 1/4 point, or $2.50
for each $1,000 invested. The yield, which moves inversely to price, slipped to
4.75%. The 30-year bond for September
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was up 3/8 point to
yield 5.46%.

The September dollar
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strengthened. It traded at ¥120.11, up
from 119.93 late Monday in New York, while the euro fell against the dollar to
98.36 cents from 98.99.

Silicon Valley Bancshares
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is
triggering to the downside out of a counter trend rally.
SIVB is carrying a

3-month relative strength rank of 20
with a downtrending ADX of 40 from
TradingMarkets.com.

Scholastic Corp.
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appears ready to
fall out of a counter trend rally.
SCHL is carrying a

3-month relative strength rank of 7
with a downtrending ADX of 47 from
TradingMarkets.com.

Big Lots, Inc.
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is pulling back to
its 20-day moving average.
BLI is holding a

3-month relative strength rank of 95
from TradingMarkets.com.

Apollo Group
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is touching the top
of a triangle.
APOL is carrying a

3-month relative strength rank of 88
from TradingMarkets.com.

NASDAQ Breadth: 2002-07-02 13:52:28

Adv: 729 / Dec: 2307 Net: -1578

UpVol: 57098751 / DnVol: 98403140 Net: -41304389

NYSE Breadth: 2002-07-02 13:52:28

Adv: 715 / Dec: 2239 Net: -1524

UpVol: 10791390 / DnVol: 105922653 Net: -95131263