What’s Leading The Rebound

At the mid way point, the three
major indices have been able to keep a modestly favorable bias intact. At the bell
this morning, stocks rose, led by General Electric
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after
the biggest company by market value said it will probably meet its earnings
target this quarter.

The Standard & Poor’s 500 Index
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added 5.16, or 0.6%,
to 824.45, with General Electric contributing more than 10% of
the advance.

The Dow Jones Industrial Average
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rebounded from its lowest levels in almost four years. Concerns over slowing
earnings growth and a possible war with Iraq sent the Dow down 15% in the past
month. Yesterday, the index closed at its lowest since October 1998, sliding
past its previous low on July 23.

The Nasdaq Composite Index
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jumped 1%, climbing above the 1200 level with modest
volume and positive bias. The strong performance by Biotech
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,
Semiconductor
(
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and Networking sectors has helped
thus far.

U.S. home resales unexpectedly
fell in August to the second-lowest level this year as consumer optimism
declines and the industry slows from a record first half of the year.

U.S. Treasuries fell for the
first day in three as stocks rose. The yields on the Dec. U.S. bond
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and 10-year note for Dec.
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are close to the lowest
levels in at least 30 years.

Biosite
(
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is pulling back
after a thrust higher.
The stock is holding a

3
-month
relative strength rank of 98
from TradingMarkets.com.

Roadway
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is rallying closer to
its 52-week high with increasing volume. ROAD has a

TradingMarkets.com RS3 rating of 99
.

Madalay Resort Group
(
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is
rallying higher from a break above the 32.00 resistance line with increasing
volume. MBG has a

TradingMarkets.com RS3 rating of 97
.

Michael’s Stores
(
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is
rebounding of a 61.8% and a 38.2% retracement level.
MIK is carrying a


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

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: 1838 UpVol: 5756267

Dec: 1285 DnVol: 1771148

Net: +553 Net: +3985119

NYSE Breadth

Adv: 1940 UpVol: 57354090

Dec: 1233 DnVol: 25203059

Net: +707 Net: +32151031