The Monday Recovery
The equity index markets are bid lightly higher across the board this morning as we work off slightly oversold conditions ahead of Greenspan’s testimony on the hill Tuesday morning.
Sellers were prevelant on the open in the SPH, but no enthusiasm was generated, and small fresh buying coupled with short-covering ensued. The main thrust of the upmove took the SPH from 1323-1331.50, with buy stops being triggered over 1326 from a few institutions. Since then, the market has traded sideways with little extension above or below 1331.50.
As for the rest of the session, I think most of the action may be over until the chairman’s testimony ends. Beware of light volume, and the possibility that the buyers may have finished for the morning.