We’re Listening…
The market will pay close attention to Greenspan’s comments at 9:00 a.m. Central, especially for any hints about rate action at the upcoming FOMC meeting next week. This morning, S&Ps are trading up 4.50 at 1133.50.
We have support on the downside at yesterday’s high at 1132.70, and then 1130, and finally the 1126 level, which is critical for the upside to remain in tact.
On the upside, our first key level is the high of the Globex session at 1135.50, and then a cluster between 1137 and 1140, where we’ve made five highs in the last two weeks.
Nasdaq is trading up 23.00 at 1569. On the upside, we have key resistance between 1570 and 1575. If we get above this, we have minor resistance between 1579 and 1581. Then we have a spike high from Jan. 18 at 1590.
On the downside, the first thing to notice is that every gap open we’ve had recently has been the trigger to sell. Today the key as we said is the 1575-1570 zone. If we fail there, the first stop should be 1552. On the way, we expect minor support between 1563 and 1560 and then better support between 1554 and 1550
The Dow was the weak sister, closing up only 17 points. If we can settle above 9900, that is the first step for the bulls’ reconstruction.