Market Analysis for Jan 12th, 2005

Notice on the enclosed hourly chart that although the Qs rallied off of their earlier spike low at 38.01, the rally has not inflicted any meaningful damage on the portion of the downtrend that started after Mon.'s rally peak at 38.87. Inability of the Qs to hurdle important micro resistance between 38.45 and 38.60 will be a very negative sign, indeed. On the otherhand, only a rally that hurdles 38.60, and follows-through to break above 38.87 will trigger meaningful upside reversal signals- that point to considerably more strength prior to the resumption of the dominant down- trend. For the time being, the micro and near term charts are telling us to remain short.

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