What’s He Going To Say?
What’s he going to say, and how is he going to say it? That’s the question of the day — as far as Alan Greenspan is concerned. He testifies this morning before the Senate Banking Committee. All ears are tuned for tone, hints of further rate cuts and comments about tax cuts.
Ahead of this, S&Ps are trading up 3.00 at 1336.50. We have to stay above 1336 for the rally to continue. On the upside, our targets are 1337.50, 1339.50, a key area at 1341.50, and a major objective at 1344. On the downside, we have 1332.50, 1328, 1325.50, 1322 and a major area at 1319.50.
NASDAQ was trading up 26 at 2327.50. That is within striking distance of our high yesterday, which came in at 2333.50. We have the first resistance zone at 2329 to 2337. If we get above this, we run right into our critical zone at 2345 to 2360. We have resistance between 2385 and 2397.
We have support between 2305 and 2295. If we get below this, look for a move back to 2250. Along the way, we’re going to have good support between 2265 and 2240.
A good rally yesterday in the Dow in anticipation of Greenspan’s testimony. If the market gets what it wants today, we could very well close above the key 11,000 zone.