Steve,
As for Greenspan, many feel that it is already incorportated in the market, so if there is some sort of confirmation/hint of confirmation that he will decrease rates, it could promote a selloff. Buy on rumors/sell on news(in this case a hint of a confirmation. But I am not the best to ask whether such is already incorporated in the market, but if it is, it could be a negative instead of a positive after he is done speaking.
Todays close will not negate the pullback, since it is still below yesterdays highs. I just quickly checked and the DOW is now a CLASS SELL, dont know if it is a CLASS 1 or CLASS 2 yet.
since we did close near the highs, the market could open to the upside tomorrow, where the 8039 resistance is pierced. Even with a break of 8039 tomorrow, it needs to break it sustantially which I consider 50 DOW points, which then brings us to the main resistance of 8095 for the immediate short-term.
I heard PISANI indicate that at the close there was a bit of buy on close orders and implied that such may be short covering.
Frankly, I believe that Greenspan probably thinks that this mrket is still overvalued. If I recall correctly, he came out with his "IRRATIONAL EXUBERANCE" comment when the DOW was around 7700. Can anyone confirm the date of that comment. Now the earnings are worse than when he first came out with that comment. If it wasnt for the internationsl crisis, I think Greenspan actually is liking this pullback in our market. Just my opinion.
Seeya |
