Tuning In…
The market is once again tuning in to Fed Chairman Greenspan who will begin testifying to the House on the economy right at today’s open. As we all know, he announced a change in his text mid-day Monday.
This morning, S&Ps were at 1265.30, up 1.20. More importantly, this is about 500 above fair value.
On the upside, we have resistance at 1269.50, 1272.50, a key area at 1275.50, and a major at 1277.50. Yesterday’s high was 1277.
On the downside, we have 1262.50, 1258, 1256.50, yesterday’s low of 1254.50, 1251.50 and a major area at 1250.
NASDAQ is up 13 at 1982. That is off the contract-low settlement established yesterday at 1969. We have resistance between 1985 and 1995. Above that, 2010 to 2025 is resistance. If we can get above this level, look for 2060. We have some resistance between 2052 and 2058.
We have support between 1960 and 1935. Contract low is 1940. Bear in mind that was made on Friday, and we traded in that area between 1960 and 1940 for some time before the final 90-minute rally. If we get below 1935, then limit down is the target at 1904.
The Dow saw some very strong buying on the close. Settled down only fractionally yesterday. We are neutral on this market.