Range-Bound

• January 11, 2002
• Kevin Haggerty

This
will be brief, as the SPX
(
$SPX.X |
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PowerRating) had an extremely narrow-range day with
a spread of 9.08 points and couldn’t make it above the 1158-1160 hourly
resistance mentioned in yesterday’s
text. It held at downside support levels, with an intraday low of 1150.85.
The 30-week EMA is now 1152.40, and the 10-week is 1146.13. The 20-day EMA is
1153. The index closed at 1156.55, +0.1% on the day.

NYSE volume fell off to
1.28 billion, had a volume ratio of 44, and breadth was once again neutral due
to the range-bound market at -75. In the groups, the
(
$SOX.X |
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the
(
$OSX.X |
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(
$DRG.X |
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(
$RLX.X |
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PowerRating) +0.9%.

The SPX has pulled back
three days to a rising 20-day EMA which is a 1 2 3 4 setup today above
yesterday’s high of 1159.93. The narrow volatility will be resolved by the
Generals in short time. You know the upside numbers, starting with 1158-1160,
and certainly the 1174 wall. Your downside is wrapped from 1152-1146 before any
air pockets will develop.

Next week, the earnings
parade starts, with many of the major banks reporting, along with
(
IBM |
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(
GE |
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PowerRating). The Generals have the
money; you’ve got the time. Enjoy the rest until the train leaves the station,
which will be soon. That’s correct. My thoughts on a retest of the September
lows haven’t changed.

Stocks
Today

Long setups:
(
FRX |
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(
WLP |
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(
GENZ |
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(
AVY |
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(
BRCD |
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(
SEBL |
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(
FDC |
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(
PCAR |
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(
QLTI |
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(
IGEN |
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(
JEF |
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(
OSI |
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(
ANN |
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News |
PowerRating).

On the shortside:
(
AVON |
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(
CAH |
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(
MIL |
Quote |
Chart |
News |
PowerRating). 

Have a good trading day,
and have a great weekend.

Five-minute chart of
Thursday’s SPX with 8-, 20-,
60- and 260-period
EMAs

Five-minute chart of
Thursday’s NYSE TICKS