A Glimmer Of Hope…
S&Ps saw a glimmer of hope today, with a spike to a high of 1239 in the mid-morning. Currently, S&Ps are at 1232.50.
After the open, S&Ps traded in a range of 1224 to 1228 and as soon as Greenspan began his testimony, this market spiked down to 1221 low. A good bounce followed to a high of 1239.
Keep in mind, as we stated this morning, this market needs to get above and stay above 1236 for the downside pressure to ease. On the upside, we face an envelope of resistance between 1241 and 1243.
Right now, we’re seeing a tug of war between the NASDAQ and the S&Ps. The NASDAQ wants to move lower, with some erosion in the second-tier stocks, while S&Ps are trying to head higher. Eventually, one of these markets is going to win over the other.
Personally, I have some optimism for a late afternoon rally. We’ll see what materializes…