Loomis Tuesday, page-4

XJO down strongly -0.78%.  Volume was again very low - affected, no doubt, by the usual Monday malaise, and the fact that America is closed tonight.



The trend remains down.

Indicators are showing potential positive divergences.  We'll wait and see if they pan out.  They do provide, however, some hope for the bulls for a move to the upside.

Banks continue to be the big problem for our market.



XXJ (Financials - dominated by the big banks) was down very strongly today -1.41%.  The Index is very oversold - but still not showing any indication of a counter-trend rally.

Bonds continue to out-perform stocks.  Until we see a reversal in this ratio - there's not much point in going back into the XJO.



RB