Oversold?
S&Ps are trading up 2.70 at 1132, with indications that the market may be approaching oversold. On the upside, we have 1133.50, major resistance at 1136-37, and then a band from 1138.50 to 1141.
On the downside, given the way that it traded yesterday, the market is approaching oversold. Moving lower, we are looking for 1130 and 1128.20, which was yesterday’s low. Below this, we have 1126.20, key support at 1125, and major support at 1123.
Nasdaq is trading up 8 at 1567. On the upside, the first key area is going to be 1575 to 1580. This is a very important area. We could not get above this zone yesterday afternoon. In addition, it encompasses Tuesday’s low of 1576.
On the downside, the target on this pattern is a retest of last week’s low of 1527. On the way to that level, 1556 to 1550 is support. Under 1550, we have support between 1542 and 1540.
The Dow settled below 9800 due to the Enron
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PowerRating) fiasco and the impact on the money center banks.