E X T R E M E M A R K E T C O M M E N T A R Y

The March NASDAQ 100 closed sharply lower on Monday and tested the 75% retracement level of the November-January
rally crossing at 1086.22 as it extends this year's decline. The low-range close sets the stage for a steady to lower opening on
Tuesday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible
near-term. If March extends this month's decline, the 87% retracement level of the November-December rally crossing at
1052.76 is the next downside target. Closes above the 20-day moving average crossing at 1192.00 are needed to confirm that a
short-term low has been posted. First resistance is the 10-day moving average crossing at 1149.27. Second resistance is the 20-
day moving average crossing at 1192.00. First support is today's low crossing at 1074.25. Second support is the 87%
retracement level of the November-January rally crossing at 1052.76.

The March S&P 500 index gapped down and closed sharply lower on Monday and spiked below psychological support crossing
at 700.00. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are oversold,
diverging but remain bearish signaling that additional weakness is possible. If March extends this year's decline, support
crossing at 655.25 is the next downside target. Closes above the 20-day moving average crossing at 796.70 are needed to
confirm that a short-term low has been posted. First resistance is broken support marked by November's low crossing at
737.25. Second resistance is the 10-day moving average crossing at 757.65. First support is Monday's low crossing at 699.00.
Second support is support crossing at 655.25.

The Dow was sharply lower on Monday and closed below 7000 for the first time since October 1997. The low-range close sets
the stage for a steady to lower opening on Monday. Stochastics and the RSI are oversold but are neutral to bearish signaling
that sideways to lower prices are possible near-term. If the Dow extends this year's decline, the April 1997 low crossing at 6315
is the next downside target. Closes above the 20-day moving average crossing at 7644 are needed to confirm that a short-term
low has been posted. First resistance is the 10-day moving average crossing at 7268. Second resistance is broken support
marked by November's low crossing at 7449. First support is today's low crossing at 6755. Second support is the April 1997
low crossing at 6315.