Sell-Off
Profit-taking and anthrax fears have pushed this market lower today, with S&Ps trading at a new low of 1074. News reports say that anthrax spores have been found in mail at the Federal Reserve, although there is no confirmation as yet. Anthrax scares tend to make the trade extremely thin and illiquid.
Before the anthrax news, we saw a contained trade in S&Ps between 1081 and 1077.50. As we said in the Morning Meeting, we see 1076 as a key level and, below it, we would look for a trade down to 1070-1069.50.
Nasdaq put in a new low for the day at 1244 as the market spiked down on the anthrax report. Later it recovered to the 1252 area, then traded lower again. We would expect a choppy trade until the news of the anthrax report is sorted out.
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