No replies to this topic

[Sullivan]

Equity Index Update Monday January 22, 2007 The index markets staged a modest recovery from Thursday’s selling as the expiration of January options seemed to provide some modest support in the marketplace. Early selling on Friday pushed the Russell 2000 cash index to its key closing support level - around the 775 to 776 zone. However, the index could not muster any fresh selling at that key zone and bounced higher throughout the afternoon. That level will be critical moving forward on a closing basis. Keep in mind…this index has essentially traded in a 3% closing band for 45 sessions – which equates to roughly 20% of an entire calendar year of trading. Whichever way the closing break comes (up or down) it should lead to a significant percentage move. Given the Bears victory and the celebration that ensued I have enclosed a couple of charts to examine on the breadth situation. So far…no real damage or divergence in the cum breadth readings.