We’re Listening, Mr. Greenspan
Will he give a hint — particularly in the Q&A — about next week’s action on rates? We’ll have to listen…
This morning, S&Ps were trading at 1373, up 280. On the way up, our targets are 1375.50, 1376.50, 1380, 1383.50, a key area at 1385.50, and a critical at 1388.50. Remember, we have a major target at 1399, which could be reached if all goes well — particularly in light of testimony from Greenspan and the market’s anticipation of a rate cut next week.
The pivotal area this morning will be 1370 to 1372. On the downside, we’re looking at 1370, 1368.50, 1365.50, a key area at 1362.50 and then a major area at 1357.50-1358.
NASDAQ was trading up 1 at 2715.50. The market fell yesterday into the bell on earnings releases. The market is trading below cash right now. We have pretty good support between 2710 and 2690. If we get below this level, there is a chance for a move to 2650. Limit down comes in at 2649.50.
The first area of resistance is 2730 to 2750. This has been our key zone for some time now. If we can get above this, it could be a reversal day, and we’d look for a rally back toward yesterday’s highs of 2799. Along the way, 2780-2790 is resistance.