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Wednesday, March 3, 2010

TIME - OUT >>> Dow Eked Out A Slim 0.02% Victory

Essentially Unchanged Amid Low Trading Volume
The Dow had its third straight winning day on signs that companies are becoming more optimistic about the economy. The benchmark index edged up 2.19 points Tuesday but closed off its best levels.

The Dow had managed to erase its losses for the year during trading but was down 22 points for 2010 by the close. Broader indexes pushed into the black for the year on Monday and extended the gains Tuesday.

Major stock indexes stand at their highest levels in more than a month but the gains have come in light trading volume. That indicates many investors are staying out of the market as they await more evidence about the economy.

The Dow Jones Industrial Average (DJIA – 10,405.98) managed to edge 2.2 points higher by the close, rebounding from an eleventh-hour trip into the red. DuPont and General Electric epitomized the day's yawn-worthy trading by finishing flat, while 17 other blue chips trekked higher. Walt Disney paced the gainers, while Microsoft and Bank of America blazed a trail lower for the 11 decliners. Despite the day's minimal price action, the Dow did notch its second consecutive daily close north of 10,400 -- a technical feat not accomplished since mid-January.

After spending the morning and earlier afternoon in positive territory, steady selling pressure kicked in for the final two hours. The Dow rebounded from a small loss and closed with a gain of a little more than 2 points.

Meanwhile, the S&P 500 Index (SPX – 1,118.31) wrapped up the day on a gain of 2.6 points, or 0.2%, after briefly testing the waters north of the 1,120 level.
Finally, the Nasdaq Composite (COMP – 2,280.79) rounded out the session by tacking on a relatively robust 7.2 points, or 0.3%.

Levels to Watch in Trading:
Dow Jones Industrial Average (DJIA – 10,405.98) - support at 9,000; resistance at 11,000
S&P 500 Index (SPX – 1,118.31) - support at 950; resistance at 1,300
Nasdaq Composite (COMP – 2,280.79) - support at 1,900; resistance at 2,600


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