Jan. 26, 2000

Hey! They didn't give a "reason" for the market rally

yesterday. I was surprised they didn't make something up, like investors were relieved Mr.

Greenspan

had to take a snow day yesterday!

What yesterday's morning decline did was confirm once again these very important support levels in the

Dow Jones Industrial Average

and

S&P

. You can see them on the charts I've shown here for the past

few days and again today. The DJIA's support is 10,800 to 11,000 and the S&P's is 1350-1400. These two averages continue to bounce from these levels, telling us they are important support zones.

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Message Boards.

Speaking of important support zones, I wanted to show the chart of

Microsoft

(MSFT) - Get Report

today. In December this chart had a big breakout from an extended base. On an intermediate-term basis you can see this recent selloff has simply brought the stock back down to retest the breakout around 100. Of course this 20% decline is quite a sharp decline in a short time. But it has also come on lower volume than the big rise did, and the stock is back at the top of its base.

Helene Meisler, based in Singapore, writes a technical analysis column on the U.S. equity markets on Tuesdays and Fridays, and updates her charts daily on TheStreet.com. Meisler trained at several Wall Street firms, including Goldman Sachs and Cowen, and has worked with the equity trading department at Cargill. At time of publication, she was long Microsoft, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. She appreciates your feedback at

KPMHSM@aol.com.