Still Listening…
The S&P futures market retains a decidedly bullish tone as Fed Chairman Greenspan’s testimony continues. Given what we see on our charts and Greenspan’s ongoing comments, we expect the market to have trouble sustaining a move.
After the 11:30 a.m. to 12:30 p.m. Central time frame, we believe the chances for a sustained rally improve as long as this market stays above 1370-1372.
Earlier, S&Ps spiked up to 1377 on a headline that said Greenspan is in favor of tax cuts sooner rather than later. S&Ps then drifted downward to a low of 1363, and have since traded back up.
As we said this morning, the key level for the upside will be the 1370-1372 area. Below this area, we have support at 1363.50 and then critical support at 1360-1358. Should the market break below 1358, conditions would be decidedly bearish.
Upside targets over 1373 are 1377, a critical level at 1378.50, 1380 and then 1382.50.
NASDAQ futures, meanwhile, are at 2715.50, holding above our support zone at 2690-2710.