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Prices were a little below the line but flat, most of the day.  Then at
1:30EST some news must have hit the Street because it all fell apart.
Prices closed modestly down, near their worst levels of the day.  For
the Bulls, the good news was that volume slackened a little, only +9%
above average.  By far most of that was in the last 10 minutes as the
market makers balanced their positions.

I think this represents one of the things we need to be aware of as
investors.  How sensitive is the market to the news of the day?  There
are times when it is nearly oblivious to the news, and other times it
seems to take fright of its own shadow or conversely go into dilerium
over nothing.  Of course, that makes it very unpredictable.  But it may
give us opportunities to buy or sell if we are clear about our
intentions and willing to act decisively.

On the other hand, it's helpful when we can recognize when whatever the
Street has been doing with the market, they've done too much of it and a
change is necessary and inevitable.  That's probably the current state
of affairs.  After all, the first week's run was on continuously
declining volume.  There's no mistaking that for a Bullish Rally.  It's
just "painting lipstick on a pig".

 Price    Vola-    Momen-   Volume   Oscil-   Summ.
 Change   tility   tum               lator    Index
 -__+     -__+     -__+     -__+     -__+     -__+

 __>_     _>__     __|_     __>_     ___>     ___|     01/06
 __>_     _>__     __|_     __>_     ___>     ___>     01/09
 _>__     _>__     __|_     __>_     ___>     ___>     01/10
 __>_     __>_     __|_     __>_     ___|     ___>     01/11
 _|__     __>_     __|_     __>_     __     01/12

Timing Signals:  I don't use or recommend timing signals, but they're
fun to watch.  If I did though, well, I might use something like this.
(Be warned!!  It tends to whipsaw around signal points!)

Last Signal: BUY        Date:  01/03/06 S&P:    1269
Winner or Loser:  tbd                   By:     tbd

See my market tracking charts for '03-'04 and my investment strategy
study at my website(s):
http://www.xprt.net/~pgrogers/Pers.html
http://www.geocities.com/paulgrogers/Pers.html




Paul Rogers, paulgrogers{at}yahoo.com                       -o)
http://www.angelfire.com/or/paulrogers                   /\\
Rogers' Second Law: Everything you do communicates.     _\_V

... If GOD doesn't like how I live, let HIM tell me
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