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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (314493)	11/9/2005 1:02:17 PM
From: Lucretius	Respond to of 436258

this clown is already wrong -g- - =DJ TECHNICALLY SPEAKING:Stocks Due For Rest After Recent Run -- By Karen Talley A Dow Jones Newswires Column NEW YORK (Dow Jones)--The stock market's recent slowdown, while discouraging for bulls, shouldn't last long, technical analysts say. "We've seen a narrowing of the rally and a drop in demand over the past few days, plus numerous short-term overbought readings, which may be a warning the market has reached a minor top," said Richard Dickson, senior analyst at Lowry's Reports. "But beyond these signs of potential near-term weakness, there is no compelling evidence that the rally from the mid-October low has fully run its course." As a result, in Dickson's opinion, any near-term pullback should be both shallow and short-lived, serving only as a minor correction in the market's rally. One technical signpost is that the Dow Jones Industrial Average, the Standard & Poor's 500 Index and the New York Stock Exchange Composite Index have all retraced more than two-thirds of the declines they experienced since their highs of early September. That kind of movement is generally considered to be a sign of strength that eventually leads to a complete retracement of the decline, Dickson said. The Nasdaq Composite Index has done even better, finishing on Monday back in positive territory for the year and just four points below its early September rally high. Probably most important, Dickson said, is there have been no signs of longer-term weakness in terms of breadth or demand, Dickson said. Some other technical analysts would feel more comfortable if more pieces fell into place. But resultant opportunities that develop may not be long lasting. The market continued a recovery trend from its mid-October low last week, with the Dow Jones Transportation Average and the New York Stock Exchange Financial Index reaching new bull-market highs. To Richard McCabe, technical research analyst at Merrill Lynch, this is encouraging, but he would like to see the Dow Jones Industrial Average soon follow suit to avoid a potential negative non-confirmation, or divergence, versus the transports. In fact, with many short-term momentum indicators now at or near moderate-overbought levels, the market could pull back to retrace part of its recent gains in the next week or two, McCabe said. Such a reaction or "test" would likely be within the context of an unfolding year-end recovery trend which should produce further gains over the next month or two. McCabe still believes that most or all of the major averages will reach new post-2002 bull-market highs. But that is before their aging major uptrends are exhausted and the market potentially slips into a cyclical decline in 2006. (Karen Talley covers the large-cap stock market for Dow Jones Newswires and also authors the Abreast of the Market Column for The Wall Street Journal.) -By Karen Talley, Dow Jones Newswires; 201-938-5106; karen.talley@dowjones.com (END) Dow Jones Newswires