Summation For now the rally continues while ignoring bad news even after a run of over +20% for the big indexes from recent lows. I still believe those levels will hold until at least March or April 2002 if not beyond, but straight up bull run to new market highs will not happen under current fundamental conditions. Until then, play the tape and don't fall in love with upside direction, it may soon break the hearts of those who do. Market Sentiment Russ Moore Split markets, but the bulls will take it. The tech rally ran out of steam as big cap tech stocks attracted some profit taking. The NASDAQ ended with a loss of -0.4 percent while the NDX gave back -1.6 percent. Blue chips carried the rally ball today with the DOW gaining +0.9 percent. Volume was respectable with 1.20 billion shares moving on the big board and 1.98 billion shares changing hands on the NASDAQ. Market breadth was positive on the NYSE, as winners beat losers by an 18/13 margin. The NASDAQ, despite finishing in the red, also saw winners edge losers by a 19/17 count. On the broader markets, biotechs continued to soar with a gain of +3.2 percent on the BTK. This index has been on fire of late, gaining +39 percent since 09/25. Other sectors on the rise included financial, oil service, oil, chemical, natural gas and cyclical. Tech sectors were seeing red with Internet, hardware and software leading the way down. Michigan Sentiment held steady, moving from 81.8 to 82.7. New home sales fell one percent to 864,000, slightly better than expected. The volatility indexes i.e. VIX/VXN, continue to fall and although both are still at relatively high levels, they have both moved to the bottom of their respective Bollinger Bands. These indexes are contrarian in nature, and when they release from their current levels and move north we will see stock indices reverse course. Intra-day: 1. Buy ADVP above 64.24 (63.83). 2. Buy DKWD above 54.79 (54.23). 3. Buy RYL above 53.91 (53.48). 4. Short ACAM below 38.76 (40). 5. Short STJ below 71.10 (71.50). 6. Short WEBX below 32.85 (33.55).