SHORT TERM: stocks open mixed after yesterdays strong rally.

Overnight the Asian markets were quite mixed, Australia's ASX and Japan's NIKK showed marginal changes, but India's BSE rallied over 1% and China's SSEC declined over 3%. Europe came in slightly lower, down 0.20%. Our stocks indices stayed mixed overnight, and opened that way this morning. At 10:00 the Natl. Assoc. of Realtors reported Dec. Existing home sales dropped 0.6%, and 7.9% for 2006. The Chief Economist of NAR stated; "It appears we have established a bottom." Positive news for our Real Estate investors and the economy. At the open the SPX/NYA made marginal new highs, but retreated somewhat, as the typical short term overbought RSI levels were hit going into the close yesterday. The techs tried to rally for the first half hour, but started to pullback as well. After some consolidation the indices should attempt another rally, which might create a short term negative RSI divergence on the hourly charts. Overall the uptrend looks good, but this recent rally in the NDX looks sloppy on the hourly charts. Best to your trading!

MEDIUM TERM: bullish

LONG TERM: bullish.