Dow, S&P Pare Back a Little as Nasdaq Pushes On

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The

Dow's

down 8, and that's good.

After yesterday's 200-point sprint, it's not news that there's a little profit-taking today. It is news that there's so little of it. The last three times the

Dow Jones Industrial Average

crept over 8000, frenzied selling ensued. With worries about Asian hits on earnings, Dow 8000 was a great opportunity to raise cash. Dow 8000 was a gift.

Today people aren't selling like before. Today they're hanging on to most of their positions. Stocks may be down a bit, but the outlook is positive.

"Today is shaping up to be a good consolidation day after yesterday's strength," said Bob Dickey, technical analyst at

Dain Rauscher

. "We had some minor profit-taking on the open and now they're coming up again. It looks like the market is going to go up, at least in the short term."

"I think they're sustainable," said Courtney Smith, chief investment officer at

Orbitex Group

, of yesterday's gains. Smith has long maintained that, Asia or no Asia, the strength of the U.S. economy coupled with the low-inflation outlook make for a positive stock-market outlook. "I think it makes perfect sense," he said of the move. "This is what I've been looking for. We should be able to make new highs here. Having said that, I'm taking profits in big pharma now."

He's not the only one. While

Glaxo

(GLX)

was down 1 7/8 to 115 7/8,

Bristol-Myers Squibb

(BMY) - Get Report

was off 2 3/16 at 100 1/4,

Warner-Lambert

(WLA)

was down 2 at 153 15/16 and

Eli Lilly

(LLY) - Get Report

eased 7/8 to 68 1/2.

After some early drops, the broader market is showing some signs of life. The Dow Jones Industrial Average lost 50 points in early trading. Around 12:30 p.m. EST, it's only off 8 to 8099. The

S&P 500

slipped 5 points at the open. Now it's down less than a point at 1001.

Over in tech land, yesterday's buying has extended into today. The

Nasdaq Composite Index

is up 10 at 1663 and sentiment is positive, to say the least.

"I'm very impressed with the techs," said Charles Payne, head strategist at

Wall Street Strategies

. "We are doing tremendous. You know what I like? I see a lot of the momentum guys coming back. When I see stocks like

Smart Modular

begin to regroup, that tells me that the momentum guys are coming back into the game." Smart Modular

(SMOD)

was up 1 9/16 at 31 3/16.