Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (25876)	9/15/1999 9:52:00 AM
From: j.o.	Read Replies (1) \| Respond to of 99985

A note from our "Market Doctor" Markets @ a Glance September 15, 1999 Retail Sales data put a pulse back into financial markets yesterday, as a much stronger than expected rise of 1.2% for the series sent fears of an overheating economy to traders. A weaker bond market took it's toll on equities, dragging down the non-tech sector. Markets may have held back a bit as they await this mornings Consumer Price Index report. One thing to consider is that even though the CPI carries a bit more market moving punch than most reports, it is merely a snap shot of what has already happened. Keep in mind that policy makers are also focusing on factors that cause an acceleration in future inflation. Stocks The Blue Chip/Tech spread once again blew out yesterday, as the Dow took it on the nose over 1% on the downside, while the NASDAQ gained this amount on the upside. Technical levels worked well for the DJIA (see yesterday's market at a glance), as the market took out the 10960 support and maintained weakness. Technicals remain negative for today. Support for the S&P 500 resides just above 1300. The NASDAQ, on the other hand, caught some support from the semiconductor sector (perhaps demand for core information technology overrides higher interest rates?). I managed to identify one more upside objective that speculators may be focusing on which resides in the 2950 area. Support for the index resides just above 2800. Keep an eye on CPI and bond prices today. It will be interesting to see if the NASDAQ can defy interest rate gravity if the number is strong. Bonds The Fixed Income side perked up yesterday, or should I say perked down as strong Retail data rekindled rate-hike fears. The market attempted to breach upside resistance in yields in the 6.11% area but couldn't follow through. Bonds ended the day right into this key resistance. Bottom line is CPI data rules today's session. 6.11% may become meaningless given a strong report…next level is 6.20%. Yield support resides at 6.01%. Long term technicals point to higher rates. Believe it or not, CRUDE actually retraced below the $24 a barrel level yesterday. Yes there are some sellers out there. The Market Doctor (it's not me <g>) j.o. indextrade.com