Ken Tower Low Quotations

We're thinking that yesterday's rally will probably go back down and test the low today... So, this afternoon, we're looking again probably for the market to sell off.

You might be inclined to explain away last week's weakness by noting the low volume and people on vacation, but the historical record of year-end rallies was built on similar conditions. More likely, the absence of sideline cash will become a common problem throughout the year.

If (Microsoft) can stay above 80, then the whole broad sector of technology stocks may have bottomed out this week and had a re-test low and be ready to turn higher.

I'm left with the sense that this is a trading-range market, not a larger decline. The major averages are now coming down to their late August lows, which are presumably the low end of this trading range. There wasn't any real sign of a reversal yesterday, but support is nearby and downside leadership is poor.