Grinding Down
Continued deterioration in the market following an earnings warning from Sun Microsystems and some concern in the market that this might be only the first shoe to drop.
S&Ps are trading at 1255.50, with short-term support at 1252-1251. Below this is a zone target of 1250-1245, with 1245 as the short-term target.
For this market to get out of immediate trouble, we’d need to get above and stay above 1257-1257.50. If that happens, we could trade over 1260 and then 1262.
More pressure in the NASDAQ on earnings fears and rumors about what bad news could surface next. NASDAQ futures at 1798, after falling below key support at 1810-1800.
Earlier, the market declined on steady selling by brokerage houses from the 1830-1825 level. Once again, the Semiconductor Index (SOX) is the proxy for this move, and it’s downward at the moment.