No “Sun” Shine
An earnings warning for Sun Microsystems has clouded the near-term market outlook.
This morning, S&Ps are trading down 5.00 at 1263.50. On the upside, our first line of resistance will be 1266.50 and then 1268.50. Keep in mind that 1266.60 was Tuesday’s low, and 1268.50 was Tuesday’s close. Above that, we have a neutral area in our key range of 1270 to 1275.
On the downside, we have support at 1261.50. If we get below that, we have 1258.50, 1253.50 and a major downside objective at 1250 to 1245.
NASDAQ is trading down 33 at 1823.50. For today, we have support between 1825 and 1815. If we get below this, look for a trade to 1795. We have support between 1805 and 1795.
If we do get a turnaround this morning, the first leg of resistance will be between 1840 and 1855. If we get above unchanged, look for a trade back to 1890. We’ll have resistance between 1870 and 1880, and then 1885 to 1890.
As for the Dow, it was up about 30 points yesterday while the NASDAQ cratered. Money is flowing back into the Old Economy at the expense of Tech.