John - the quiz of the day, what will happen?
Princeton not too optimistic peicommerce.com short term.
I think we have had a good correction and looking through the 10 min charts of the DOW last night I get the same impression with a potential for an upswing.
Basically, the market makers wanted a correction, and piling on with the banks downgrading certainly did it, in addition to Rubin resignation, rumours of trouble for Summers, the Greenspan upward rate bias . This is a needed correction so that going into the July 2nd quarter earnings the market can be poised for a run up possibly to 12,000 or more. We could go back to about 10,500 on the DOW before this is over, even all the way back to 10,000, but I doubt that. Banks, oil, TRAN really took it on the ear yesterday, and also the Internet sector which is down about 27% from April high.
I think we could see pretty choppy session until the market gets some sense of direction and then I see a possible recovery, maybe back to 1325 or so.
Usually, with such a big sell off the bargain hunters are there and give the market a boost. We'll just have to see if they are interested this morning. Yesterdays selloff was an low volume, so not a panic dump by everyone, just the market makers taking things down to make some der buxs on the short side. It looks to me like the shorts covered on the DOW stocks and so they could be long again.
Lycos being added to NAS100 on Friday so could bring some interest and buying back to the Internet sector. Would think that the Internet market makers aren't going to leave the Internet sector go to the tank, so we should have a rally back to all time highs, and a selloff again. |
