The Greenspan Effect In Force – Here’s What I Mean

  • July 15, 2003
  • Chris Curran

Tuesday’s trading
started with another gap to the upside, as the Retail Sales and NY
Empire State Index reports gave the economic cheerleaders another reason to
smile.  The size of the gap and the fairly low volume pointed to the good
probability of a “gap and trap” open, and a few minutes after the opening bell,
Merrill Lynch was a good seller of a couple hundred September S&P 500 futures
down to the daily pivot in the 1,004.50 area.   Fed Chairman Greenspan began his
2-day testimony before Congress and the notes from his speech hit the newswires
at 10 am ET.  The main theme was that he will “leave rates low for as long as is
needed” and that the Fed has “substantial room for more rate cuts, however,
there was mention of “unorthodox” methods being considered at the last FOMC
meeting.  His “Greenspeak” did its usual to confuse the market, as price
initially popped off the release and then headed South to print a new low and
close the opening gap. 

At 10:25 am ET, the September S&P 500 contract
was +3.00, after closing its gap and bouncing off the overnight low at 1,001.50.

                           

Daily Pivots for 7-15-03

Symbol Pivot       R1 R2 R3 S1 S2 S3
COMP 1759.94 1771.00 1787.16 1798.22 1743.78 1732.72 1716.56
INDU 9194.00 9261.56 9345.96 9413.52 9109.60 9042.04 8957.64
NDX 1300.89 1311.30 1326.83 1337.24 1285.36 1274.95 1259.42
SPX 1006.78 1012.49 1021.11 1026.82 998.16 992.45 983.83
ESU 1004.42 1012.83 1023.17 1031.58 994.08 985.67 975.33
SPU 1005.90 1011.50 1020.40 1026.00 997.00 991.40 982.50
NDU 1303.83 1315.67 1331.83 1343.67 1287.67 1275.83 1259.67
NQU 1300.83 1318.17 1336.83 1354.17 1282.17 1264.83 1246.17
BKX 915.63 921.10 928.57 934.04 908.16 902.69 895.22
SOX 402.42 406.95 411.81 416.34 397.56 393.03 388.17
QQQ 32.35 32.62 33.03 33.30 31.94 31.67 31.26
SPY 100.78 101.85 102.96 104.03 99.67 98.60 97.49

 

Good luck with your trading on Tuesday!

Chris
Curran