1. MORNING OUTLOOK Pre-market futures are higher and suggesting that markets may open flat to higher. Automakers helped Europe to post moderate gains Tuesday amid further economic indicators showing an improving economy, but two of the largest European companies, Nokia and Munich Re, slipped back after updates failed to meet investor expectations. Tokyo's key stock benchmark ended higher Tuesday as technology issues tracked a big rally for their American counterparts on the Nasdaq while banks surged ahead of the release of their results after the bell. U.S. stocks posted solid gains as a rebound in the dollar underpinned a strong, broad-based rally in stocks Monday as investors bet that upcoming data would reinforce an upbeat picture of the U.S. economy. The Dow Jones Industrial Average rose 119.26 points, or 1.24 percent, to 9,747.79. The Nasdaq Composite rose 53.26 points, or 2.81 percent, to 1,947.14 while the Nasdaq 100 Index rose 45.99 points, or 3.35 percent, to 1419.31. The Standard & Poor's 500 Index rose 1.62 percent while the Russell 2000 Index of small-capitalization stocks rose 2.58 percent. Volume amounted to 1.29 billion on the NYSE and 1.80 billion on the Nasdaq Stock Market. Market breadth was positive, with Advancers were leading Decliners by 2452 to 838 on the NYSE. Nasdaq's Advancers were leading Decliners by 2316 to 925. Dow gained 119 points to close at 9747. Dow is still trading with negative momentum above 50 and 200-Day MA. Dow is trading near the middle of its recent trading channel and appears to be gaining momentum. Dow could see 10000 level in the next few weeks. Watch 9800 level for potential breakout and 9700 for support level. OW's resistance levels are: 9869, 9995, 10151. DOW's support levels are: 9625, 9503, 9395. Nasdaq gained 53 points to close at 1947. Nasdaq is trading with positive momentum and appears to be stronger than Dow. Tuesday's trading could be cautious and active. Sectors to Watch: Drugs,Internet,Networking,Semiconductors,Airlines Precious Metals,Oil & Gas,Energy,Telecom,Utilities Index: [Support Levels] [Resistance Levels] ____________________________________ Dow: [9625 & 9503] [9869 & 9995] Nas : [1934 & 1913] [1969 & 2013] S&P: [1039 & 1026] [1065 & 1079] _________________________________________________ 2. FOREIGN MARKETS ( + ) Asian Markets are up. HongKong [1.35%]; Japan [1.09%]; Korea [1.92%]; ( + ) European Markets are up. France [.60%]; Germany [.69%]; U.K. [.58%]; _________________________________________________ 3. PRE-MARKET ACTIVE STOCKS .....News Related TWTR, RBK, SNIC, AVID, FON, PCS, C, PSFT, HRB, _________________________________________________ 4. STOCKS TO WATCH .....momentum stocks NOVL,GNSS,AMD,TQNT,ATML,CRUS,RIMM,FCX,NSM,PHM,TER,BRCM,CTX, MSTR,NXTL,SPOT,RDWR,FBF,MOT,YHOO,SANM,UIS,S,ADSK,SONS,MO, XLNX,HUM,JCP,BMET,ELX,MSCC,ROK,RX,MCHP,HCR,INTC,CD,CSCO, CTAS,CIEN,TEK,KBH,FMC,FO,BBY,CKFR,SNV,HAS,JNPR .....daytrading stocks RHAT,NANO,XMSR,CRUS,MSTR,NXTL,SPOT,RDWR,EXTR,YHOO,SANM,PSFT,RFMD, XLNX,SEBL,BMET,MSCC,CSCO,CTAS,RSAS,CIEN,CKFR,JNPR,WEBM,CELG .....today's earnings HRB (-.07),HRL (.40)