* JIM'S MARKET THOUGHT OF THE DAY *

It would not surprise me in the coming few weeks to see a healthy downside correction in the stock indexes--something more than just a one-day profit-taking pullback. When the significant correction does occur, it's likely the U.S. Treasuries will be the beneficiary, via assets flowing from stocks and into the Treasuries (bonds and notes). To extrapolate further, the recent rally in the bond market could be a precursor to an impending stock market correction.--Jim

U.S. STOCK INDEXES

The stock indexes are solidly lower in early morning electronic trading. Weakness in Asian stock markets led to some fresh overnight selling pressure in the U.S. equities. The stock index bulls still have the overall near-term technical advantage.

March S&P 500: The shorter-term moving averages (4-, 9- and 18-day) are neutral but turning bearish today. The 4-day moving average is below the 9-day and 18-day. The 9-day is above the 18-day moving average but is turning down. Short-term oscillators (RSI, slow stochastics) are bearish early today. Today, shorter-term technical support comes in at the overnight low of 1,441.60. Sell stops likely reside just under that level. More sell stops likely reside under shorter-term technical support at the February low of 1,435.10. Upside resistance for active traders today is located at 1,448.00 and then at the overnight high of 1,452.70. Buy stops are likely located just above those levels. Wyckoff's Intra-day Market Rating: 4.0

PIVOT POINT LEVELS FOR MARCH S&P 500:

Pivot:------------ 1,453.40
1st Support:------ 1,447.15
2nd Support:------ 1,441.70
1st Resistance:--- 1,458.85
2nd Resistance:--- 1,465.10

March Russell 2000: The shorter-term moving averages (4- 9-and 18-day) are bullish today, but turning neutral. The 4-day moving average is above the 9-day but is turning down. The 9-day average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are bearish early today. Shorter-term technical support is located at 815.00. Sell stops likely reside just below that level, and then more sell stops are likely located just below technical support at 810.00. On the upside, short-term resistance is seen at the overnight high of 820.70. Buy stops are likely located just above that level. More buy stops are likely located just above resistance at 825.00. Wyckoff's Intra-Day Market Rating: 4.0

PIVOT POINT LEVELS FOR MARCH RUSSELL 2000:

Pivot:------------ 825.25
1st Support:------ 819.20
2nd Support:------ 813.30
1st Resistance:--- 831.15
2nd Resistance:--- 837.20

March Dow: For today, sell stops likely reside just below support at Monday's low of 12,630 and then more stops just below support at 12,600. Buy stops likely reside just above shorter-term technical resistance at Monday's high of 12,718 and then at 12,750. Shorter-term moving averages are neutral early today, as the 4-day moving average is below the 9-day and 18-day. The 9-day moving average is above the 18-day moving average. Shorter-term oscillators (RSI, slow stochastics) are bearish early today. Wyckoff's Intra-Day Market Rating: 4.0

PIVOT POINT LEVELS FOR MARCH DOW:

Pivot:------------ 12,667
1st Support:------ 12,617
2nd Support:------ 12,579
1st Resistance:--- 12,705
2nd Resistance:--- 12,755

U.S. TREASURY BONDS AND NOTES

U.S. T-Bonds and T-Notes are solidly higher early today, as prices hit another fresh seven-week high overnight and the bulls have solid upside near-term technical momentum.

March U.S. T-Bonds: Shorter-term moving averages (4- 9- 18-day) are bullish today. The 4-day moving average is above the 9-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are bullish early today. Shorter-term technical resistance lies at the overnight high of 112 18/32. Buy stops likely reside just above that level. More buy stops likely reside just above technical resistance at 112 24/32. Shorter-term technical support lies at the overnight low of 112 5/32. Sell stops likely reside just below that level. More sell stops are likely located below support at 112 even. Wyckoff's Intra-Day Market Rating: 8.0

PIVOT POINT LEVELS FOR MARCH T-BONDS:

Pivot:----------- 112 1/32
1st Support:----- 111 24/32
2nd Support:----- 111 10/32
1st Resistance:-- 112 15/32
2nd Resistance:-- 112 24/32

March U.S. T-Notes: Shorter-term oscillators (RSI, slow stochastics) are bullish early today. Buy stops likely reside just above shorter-term technical resistance at the overnight high of 108.06.5, and more buy stops are likely located just above resistance at 108.10.0. Shorter-term moving averages are bullish early today. The 4-day moving average is above the 9-day. The 9-day is above the 18-day moving average. Sell stop orders are likely located just below support at the overnight low of 107.31.0, and then more sell stops just below support at 107.26.0. Wyckoff's Intra Day Market Rating: 4.0

PIVOT POINT LEVELS FOR MARCH T-NOTES:

Pivot:------------ 107.29.0
1st Support:------ 107.26.0
2nd Support:------ 107.19.0
1st Resistance:--- 108.04.0
2nd Resistance:--- 108.07.0