Strong Opening
S&Ps were up strongly again this morning, trading up 16.20 at 1188.40. Strength in the market after Salomon called for a cyclical bottom in the Semiconductor Stocks.
On the upside we have 1190, which would fill an open gap, 1191.50, 1194.50, and 1199.50-1200.
On the downside, we have 1184-1184.50, which is key, and then 1182.50 which was yesterday’s high.
NASDAQ was limit up at 1653 bid. This entire area between 1650 and 1700 was heavily traded three weeks ago.
We have a resistance zone between 1680 and 1705. If we get above this, it targets a play for 1750.
Expect support between 1650 and 1640. If we get below this, look for a move to 1620, and expect a heavily traded area between 1620 and 1600.
The Dow closed at 10,102 yesterday. Looks like there is a good chance over the next couple of sessions that it could trade up to the 10,500 to 10,600 level.