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epa01586848 An Israeli Merkava tank is directed into position on a military staging area outisde of Sderot filling up with tanks and armoured personnel carrier near the border with the northern Gaza Strip on 29 December 2008. Palestinian militants continue to fire Kassam rockets, several of which made direct hits on residential areas both in Sderot and Ashkelon today, and Israel continues to strike Gaza from the air. EPA/JIM HOLLANDER