Three Reasons For The Positive Bias

At today’s midpoint, the three major indices are
mixed
. The Dow Jones Industrial Average
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and the Standard
& Poor’s 500 Index

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are positive for a second day as
better-than-expected government reports on durable-goods orders, home sales and
jobless claims suggested corporate profit growth will begin to accelerate.

Telecommunications chipmakers Qualcomm
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and RF Micro
Devices

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gained after a Nokia
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Oyj executive said
industry-wide mobile-phone sales may climb as much as 15% next year.
Bed Bath & Beyond

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advanced after the largest U.S.
household-goods retailer said second-quarter earnings surged 40%.

The S&P 500 Index
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hit the
1.0 Volatility Band and formed a 1,2,3 top on the intraday chart. The S&P 500
has pulled back and broken down below the 50-period moving average. Read

Lewis Borsellino’s S&Ps PM
for today’s support and resistance levels on
the S&P 500.

The Nasdaq has dropped off into negative
territory. Part of this could be due to some profit-taking after the strong
morning and yesterday. The fall in the Semiconductor Index
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is
contributing to the tech-heavy Nasdaq’s decline. The SOX was one of the leading sectors
yesterday but has dropped off today.

Other sectors that are moving the markets are
Oil

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and Oil service
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due to President Bush’s comments on
an Iraq invasion. Auto stocks are strong,
thanks to some positive comments from General Motors
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and Ford

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has climbed back into double digits. Hotels are stronger due to the
positive earnings guidance from Marriot
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, Airlines
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,
Machinery, Grocery Retail, Railroad and Insurance. 

The Homebuilders are on the rise due to the earlier New Home Sales Report. Sizeable gains
were posted by: Hovnanian
Enterprises

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, MDC Holdings
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, KB Homes
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,
Ryland Group
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and Centex
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. The
weaker sectors are: Gold
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, Aluminum, Biotech
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and Chemicals.

Invision Technologies
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is rallying from the 50-day moving average after a pullback from the high. INVN
has a

TradingMarkets.com RS3 rating of 96
and an up trending

ADX
of 30.

Nasdaq Breadth

Adv: 1382 UpVol: 176317236

Dec: 1636 DnVol: 706978305

Net: -254 Net: -530661069

NYSE Breadth

Adv: 2033 UpVol: 57754796

Dec: 1102 DnVol: 39094750

Net: +931 Net: +18660046