Rumor Mill
S&Ps rallied over the 900-mark, largely on an unconfirmed rumor that Saddam Hussein had been captured. If the rally is “real” the market should hold above 895. Upside targets would then be 900-901, then 902.50-903, and 905. On the downside, if S&Ps reverse from the 898 area, then have trouble staying over 895, look for 892, then 890-889.50 and possibly 888-887. As noted on the Morning Meeting, we have a pivotal area at 887.60-887, and then support at 885 and 880.
Nasdaq, too, has rallied on the unconfirmed rumors. For the rally to be “good,” we need a sustained trade above 1086. Upside targets are 1092 and then 1093.50-1094. On the downside, if Nasdaq reverses down quickly from the 1089 area and then has trouble staying over 1086, look for 1082, then 1080-1079 and possibly 1076-1075.