A while back I suggested an optimistic technician could draw a
Horizontal Support Line at about 875.  Well, we're there.  A few months
ago I suggested after the October low a retracement back to 850 or so
would be very normal.

What's especially noticable is how light Volume continues to be.  Some
due to the Holidays, to be sure.  But in spite of talk about North Korea
and Iraq, this low Volume shows no panic selling.

So I wouldn't be surprized to see the Market go a little lower, but if
you can tighten-up your stops, making the 7% Solution more of a 5%
Solution, a low volume Correction like this could be a good opportunity
for some bargain hunting.  Signs of a recovery aren't obvious yet, and
it doesn't seem the Market is anticipating it in the next 6-9 months, so
if I was going to do it I'd wait for my price and just nibble.  Stock
selection will be critical, but buying at the right price helps too.

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

 ____      _|__      ___<      _<__      __|_     12/20
 __|_      _|__      _|__      |___      _|__      __|_     12/23
 _>__      _|__      _|__      __      __|_     12/24
 _|__      _|__      _|__      _      __|_     12/26
 _<__      _|__      _|__      <___      _|__      __|_     12/27

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: SELL       Date:  12/16/02 S&P:    891
Winner or Loser:  Loser                 By:     -19

See my market tracking charts for '00-'01 and my investment strategy
study at my websites:
http://www.xprt.net/~pgrogers/Pers.html
http://www.angelfire.com/or/paulrogers/Pers.html
http://www.geocities.com/paulgrogers/Pers.html

                                                   




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