Bounce!
A nice bounce in the late morning, with some short-covering and fresh buying. With S&Ps at 1121, it’s possible that we’ve already seen the range for the day. We’d look for 1095-1098 on the downside, and 1123-1125 on the upside.
The upside looks to be in better shape if we stay above 1117.50, which increases the odds we’ll see 1125. Above that, our next target is 1128.50.
On the downside, we have a level at 1116.50-1114, and then a key level is 1112.
Earlier in the day, we traded lower as Greenspan gave his testimony. But the longer he talked, the more the market stabilized before moving higher.
NASDAQ moving higher as well, trading to 1449, in our resistance zone from 1445 to 1452. Once again, keep your eye on the Semiconductor Index (SOX), which is a good proxy for what is happening in this market.