Watching The Numbers…
The economic reports will weigh on this market today, following this morning’s weaker-than-expected Durable Goods report.
At 9 a.m. Central we get the double-whammy: Consumer Confidence and then New Single-Family Home Sales. These two numbers will be very crucial as rumors swirled about Greenspan’s testimony before the House tomorrow.
S&Ps are down 3.60 at 1270. We’re trading at fair value right now. On Monday we closed 3.00 points above it. On the upside, our target key areas are at 1272 and then 1274.50-1275; 1274.30 was yesterday’s high. Above that we have 1279, a key area at 1281.50 and a major at 1284.50.
On the downside, we have 1264.50, 1262.50, a key at 1259.50 and a major area between 1256 and 1257, which yesterday we had to get above to preserve the upside momentum.
For today, NASDAQ is trading down 18 at 2082. That is 16 points below cash.
We have support from 2075-2050. Our low hourly close was 2050. This will be critical. If we close on an hourly basis below 2050, there is a very good chance of a trade down to 2000.
We have staircase resistance between 2105 and 2120. Do not expect this area to be taken out easily. If we are to get above it, the target becomes 2160. We have resistance between 2138 and 2145.
The Dow responded quite well to hopes for positive news from Greenspan, settling at 10,642. We are neutral.