Dow Vs. Nasdaq…Who Will Win?
Something has happened on our way to rallyland, and its call letters are
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PowerRating). Every attempt we have to build on a rally has been halted, and until this changes, the equity markets will continue to trade in some disarray.
As for the SPH, we have been contained to a 12.00 point range since the open of 1340-1352. The financials continue to provide the key ground from which we are able to hold this rally. If this group fades, I would expect some difficulty for the index. Remember, on Friday we settled the SPH at a new contract low of 1326.
My feeling is there will be a rally attempt into the close, most likely filling our leftover gap from 1349.50-1356. However, I am questionable about whether this rally can hold. The simple fact is this: without the techs joining in this rally, I think we will have a difficult time settling above the 1350 level. I would suggest keeping it close to the vest — unless the techs turn around. If the NDH makes it above 2675, I would expect a move across the board to substantially higher levels in all of the indexes.
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