AFTEROON TURNAROUND ON GOOD VOLUME
DOW ENDS UP 51 POINTS... After falling earlier in the day, the Dow Industrials ended up 51 points for the day. As Chart 1 shows, the upside reversal took place on rising volume. That's a good sign -- if there's follow-through tomorrow. The Dow still needs to climb above the highs of the last two week's to restore the short-term rally attempt. The Nasdaq 100 closed in the black today -- also on heavier volume. That higher close negated the "island reversal" top we talked about earlier today.
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CISCO ENDS BACK OVER MOVING AVERAGE SUPPORT... Although it didn't fill the overhead gap left on the opening, Cisco did manage to climb back over its 50-day moving average -- on higher volume. Cisco was the Nasdaq's most actively-traded stock. Two other big techs that were heavily traded were Intel and Oracle. Both ended over their 50-day averages as well.
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GOLD AND OIL CLOSE LOWER... One of the contributing factors to today's late bounce may have been some profit-taking in gold and energy prices. Crude oil fell 42 cents, while gold lost $4.00. As a result, gold and oil stocks were down as well. The Oil Service reversed to the downside after reaching chart resistance at its December high. The last chart shows the Gold (XAU) Index ended under its 200-day moving average.
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CNBC INTERVIEW WEDNESDAY MORNING... I'm schedule to do an interview on CNBC at 10:45 (NYT) on Wednesday morning. We'll be discussing the current intermarket picture. Tune in if you can.
