Tone Shifts
The tone of the S&P market has shifted somewhat to a more positive bias after a neutral open. S&Ps
opened with a rangebound trade between 1462 and 1466.50 that lasted the first half-hour of trading. Weakness in the Dow and early softness in the tech sector pulled S&Ps down to 1456.50.
Since then S&Ps built a base below 1460, and a mid-morning rally led by the NASDAQ brought S&Ps to recent high of 1465, which is the near the top of our pivotal range of 1463-1465.50.
The SOX Index, which came under extreme pressure yesterday with the downgrade of the semi-conductor sector, is at 1092, up 2%. As long as the SOX stay positive, and other techs follows, this market has a chance to rally.
However, S&Ps need to get through our pivotal range, and trade over 1468 to be in the clear.
NASDAQ, meanwhile, opened higher, went to negative, and has since rallied. NASDAQ futures are trading around 3715, 70 points off the low, within a cluster up to 3725. NASDAQ will have to get through this cluster in order to gain a clear shot to the upside. INTC is leading the NASDAQ chart, rallied 3 points since 10 a.m. Central.