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To: Donald Wennerstrom who wrote (29373)3/15/2006 9:07:42 PM
From: Donald Wennerstrom  Respond to of 95638
 
S&P 500 breaches 1,300 mark
Broad gauge at May 2001 high after Fed Beige Book

By Mark Cotton & Leslie Wines, MarketWatch
Last Update: 4:35 PM ET Mar 15, 2006

NEW YORK (MarketWatch) -- U.S. stocks rallied to a higher close Wednesday, with the S&P 500 breaching the 1,300 mark for the first time since May 2001, after a Federal Reserve report showing the economy growing at a steady pace with few inflationary pressures.
The report raised hopes the central bank could end its cycle of interest-rate increases. The Fed has been lifting short-term rates in a bid to slow the economy and curb inflationary pressures.

[snip]

marketwatch.com



To: Donald Wennerstrom who wrote (29373)3/15/2006 9:13:18 PM
From: Gottfried  Read Replies (1) | Respond to of 95638
 
Don, >That should be a positive for more market gains?<

yes but as the article says...

>The resultant signals derived from the report are therefore often early warnings that should not be ignored but that should be applied in conjunction with other tangible forms of analysis that identify current market action such index trends and market breadth.<

market breadth could be better. Ask RtS.



To: Donald Wennerstrom who wrote (29373)3/15/2006 11:14:43 PM
From: Return to Sender  Read Replies (2) | Respond to of 95638
 
It is not a negative. At long term market bottoms we see bears outnumbering the bulls in the Investors Intelligence Poll. So yes the market can go higher. Especially the NASDAQ since it is not yet as near to overbought.

As for market breadth?

investorshub.com

It's not all bad but there are negative divergences.

investorshub.com

investorshub.com

Does no one want to discuss this chart?

martincapital.com

It is saying to me the same thing the yield curve did which is lighten up on the rallies here. The FED is going to go too far. Don't be one of the small investors left holding the bag.

JMHO, RtS