Good News
The market received some good news, courtesy of Dell Computers, which says it will meet Q2 estimates. S&Ps are up 23.50 points at 1136.
For today, 1134-1132 is a key area that we must stay above to keep this rally going. On the upside, we have a major area at 1137.50 and then 1140.
On downside, under 1132.50 we have 1129.50, then 1123.30, which was the limit-down level on Tuesday.
NASDAQ is limit up at 1421.50 bid. Assuming that we open at 1450, which is yesterday’s high, that is in the middle of a resistance zone of 1449 to 1454. If we get above this, look for 1480. We have resistance between 1470 and 1476.
Now if they fail, the first line of defense should be 1420-1410. If we get below 1400, expect negative sentiment to overwhelm the trade, that would most likely lead to a lower low than yesterday.
As for the Dow, it appears to have successfully retested the low of two weeks ago at 9106. Yesterday’s low was 9375, and we settled 135 off that.