Starts And Stops
The equity index futures have participated in another downward leg this morning, challenging last week’s low of 1217 in the SPH. We have been filled with starts and stops during this 16.50 point range for the market.
Moving forward throughout the session, I think the key will be if we can hold above the 1226-1228 level. If we do, the upside has a chance to retrace some of this downdraft we find ourselves in. But, the simple fact is this: until we get a clear cut idea about what Greenspan is going to do, the market will continue to drift lower in a low-volatility trade.
The upside targets I would look for are 1245-1248, and if we had some aggressive short covering, possibly up to 1255. As for the downside, below 1228-1226 I think we should go for 1215.