Commentary--P. Cherney, S&P: "Downside Appears Limited"
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>>>Thursday November 09, 2000 (4:52 pm ET)
Downside Appears Limited
By Paul Cherney, S&P Market Analyst
NEW YORK, Nov. 09 (Standard & Poor's) - Obviously, this market is at the mercy of the latest headlines (whatever they will turn out to be) concerning the election, but the volume moving into the price advances is definitely outpacing the volume going into the declines.
The NASDAQ has tested and retested the 3100-3000 level 5 times since October 12th of this year and every single time the buyers have come into the market to lift prices.
None of us can predict headlines, but the market appears to be running out of sellers.
The NASDAQ is not generating "get me out at any price" levels of new 52 week lows. In today's market, as of 3:37 pm EST there were 184 new 52 week lows, on a par with the 194 new lows generated on October 26th when the intraday low for the NASDAQ was 3081.36. Thursday's low print was 3087.06.
There is a good possibility that the downside is limited. Just the hint of a resolution to the presidential election would go a long way in bringing the potential buyers in off the sidelines.
Immediate NASDAQ resistance is 3230-3260. Resistance becomes very thick in the 3266-3296 area. In Wednesday's market, the NASDAQ tested support in the 3196-3080 area (the intraday low was 3087.06, which means that support held. There is a focus of support 3186-3133.
The S&P 500 is testing immediate support in the 1415-1379 area. The intraday low for the session was 1369.68 but buyers came in for a close at 1400. The focus of support 1407-1391 is holding on a closing basis. Immediate S&P 500 resistance is 1416-1444 with a focus of resistance in the 1431-1444 area.<<< |
