Bank of England decision to leave the rates unchanged alongwith European Central Bank the market may open slightly lower, I would think that 1360 will be the first objective, AMZN after hours yesterday was well bid we may see a rally in internets as AT&T and MSFT announce the deal. Techs may overall benefit, we have tested these supports well and I expect that market will after intial opening find some good bids in some of the internet stocks, I would think that AOL may benfit alongwith ATHM and EBAY.
I will like to run a long position until 618 on DOT is taken out, on Comp the support is at 2500 and NDX 2100 we have seen good consolidation at these supports and in most liklihood we may see now an interim test of intermediate resistances like 1360 on SPM , 650 on DOT and 2575 on Comp, I should expect that these resistances may be taken out, the market have taken a lot of strength from the dips, a market coming out of single day tests have very rarely failed unless some big news hit the market, I would think we will see this rally continue, the first sign of trouble will appear at 1360 area, this has been a selling focus for pits, today I would like to see if they short it, the pits will be certainly go long at 1342 and may short the first spike with a stop loss at 1364 area, the move above 1366 may lead us to 1378.. as lot of short covering is expected above 1367 area... I will like BKX to maintain strength and hold this 902 very well, RUT looks like forming a base and will attempt higher if 1360 is taken out.
Levels to watch long at 1342 and short below 1336, on break up long at 1367, a trade on long side between 1348 and 1360 is possible in the earlier part of the session.. |
