Heavy Selling
After heavy selling this morning, the S&Ps may have a chance for a rally in the late morning — although how sustained and significant remains to be seen.
In the late morning, the S&Ps made a new low at 1329.50, then recovered to around 1332 at this writing. Two hours into the trading rally, we had not see a signifiant, sustained rally off the break. We did make it as high as 1337, but then came right back down.
The hopeful sign at mid-day is that when the S&P made a new low, the NASDAQ did not, and the Dow is showing some strength.
In the Pit, we saw heavy selling at the open, with one major brokerage selling between 1340 and 1338.50. Basically, as long as we stay under 1338-1340, the market remains bearish.
We see support on the downside is at 1328.50, bigger 1326.50, and even bigger at 1324 and a major at 1319.
In the NASDAQ, one dominant factor has been Microsoft, which continues to trade around 50. The NASDAQ did spike over 2605 on some strength in Cisco. But this market is struggling, and we could see a significant move in either direction. We continue to watch the second-tier stocks closely for a clue to future action.