S&P--Cherney on the Markets: "NASDAQ: Searching for a Bottom"
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Edited for ease of reading.
>>> Wednesday September 13, 2000 (4:24 pm ET)
NASDAQ: Searching for a Bottom
By Paul Cherney, S&P Market Analyst
NEW YORK, Sep. 13 (Standard & Poor's) -The NASDAQ is in a short-covering rally. Historic odds favor another day of gains on Thursday (for the NASDAQ).
Short-covering rallies typically last 1 to 4 trade days before a retracement unfolds which can see prices retest the recently established lows.
Historic odds are still very high that even a 1 to 4 day short-covering rally will see prices dip again and undercut the low established in the morning on Wednesday (3794), and unless other technical conditions establish themselves, that is my intermediate term outlook.
NASDAQ:
...bulls should want to see the market open lower on Thursday and prints in the 3858-3835 area cannot be ruled out.
...Immediate resistance for the NASDAQ is 3919-3958 area, this area of resistance is considerable.
...Resistance above 3970 looks like a brick wall and if the index managed to print above 3970, it would be a likely spot for short-term momentum players to take the money and run.
The S&P 500:
...has support 1482-1468 with a focus 1477-1473 and this are is not expected to be broken on a closing basis.
...Immediate resistance is former support: 1488-1513.
The DJIA:
...has well established resistance in the 11,200-11,425 area.
...Support is 10,999-10,832 with overlapping support at 10,850-10,675.<<< |
