HIGHER OIL PRICES --AND A FALL IN HEWLETT PACKARD -- HURT STOCKS

CRUDE OIL SPIKES AGAIN -- NEARS $38... April crude oil prices spiked up another $1.64 to close at 37.70. That puts prices within striking distance of the peak formed during late 2000. A close above $38 would put crude at the highest level since 1990 when it rose to $40. Naturally, that had a positive effect on oil stocks -- but a negative impact on the rest of the market.

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DEVON ENERGY BREAKING OUT ON VOLUME... In a strong energy group, we were especially impressed with Devon Energy. The chart shows why. The energy stock broke though its December high and closed over 50 for the first time since early November. Look at the high volume bars during this week's upward price surge. That's pretty impressive.

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UTILITIES SINK... Utilities were the biggest sector losers today. A big reason was Alleghany Energy. The chart is pretty ugly. Some other big utility losers were Mirant and Teco Energy. They're also falling on rising volume.

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HEWLETT PACKARD HURTS TECHS... We showed this big computer maker breaking down at mid-day. The final version doesn't look any better. HPQ tumbled beneath its 200-day moving average on monster volume. That unsettled other computer makers -- and the entire tech sector.

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CISCO SLIPS AGAIN... Once again, Cisco was the Nasdaq's most active loser. It's size also gives it a lot of influence in the Nasdaq 100 which was among today's weakest indexes. Cisco ended today beneath its 50-day average -- and is threatening its 200-day line. The stock also appears headed for a test of its December/February lows. Needless to say, any close beneath those support levels would have bearish implications for it and the tech sector.

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NASDAQ 100 SLIPS BENEATH 20-DAY AVERAGE... Earlier this week, we showed the Nasdaq 100 failing a test of its 50- and 200-day moving averages. Today, it closed back under its 20-day average for the first time in seven trading days. The chart shows the (dashed) 20-day average surrounded by Bollinger Bands. Usually, a climb above the 20-day average leads to a challenge of the upper band, which happened in early January -- and again last week (see blue circles). A close back under the 20-day line usually signals a retest of the lower band -- as happened about six weeks ago and again today (see red circles).

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