Up, Down — A Case Of The Greenspan Waiting Game
The equity index complex received good news as the consumer confidence and new-home-sales reports came in weaker than expected. This was good news because most traders are hoping for a strong statement from Greenspan in his testimony to congress Wednesday. On the heels of these releases, the SPH and NDH shot up to their session highs before the old “sell the news” adage came into play.
Locals and dealers hit the market hard as the SPH broke from 1274 to 1259 before the damage had subsided. However, the faith in Greenspan remained undeterred and led to a strong recovery rally with new highs at 1277.
For the rest of the session, I would like for a sideways trade over the lunch period, followed by a late afternoon rally towards 1288.