To: IQBAL LATIF who wrote (30343 ) 1/5/2000 3:38:00 AM From: IQBAL LATIF Read Replies (2) | Respond to
Once 3685 was breached in the second wave of selling the momentum sellers had an upper hand, the market took out all major supports on SPH 1442 1435 1428 and cosed below that 1418 area which has been a support, now at 1411 close of last night I would assume that if we close below 1428 today and test 1400 the most important of supports as it also synchronises with the 3500 on NDX. With bond yields little settled and huge massive selling of the leaders yesterday today my resistance would be at 1418-22 area and support the 1400 area, if I see 3500 on NDX I would assume that we will hold it, yesterday BKX at 700 displayed a good support these levels on financials and 1700 on brkb index did signal a kind of tiring interest in the sectors which have not really participated in this rally. For all practical purposes I did not anticipated this 1442 break to be accomplished in a single day, it helped to establish puts as 3685 was breached but now the selling has been so severe that we do see a technical damage as the band of consolidation has moved down to 1400-1442 in NDX we may now see probe of lower supports like 3500, with strong economic numbers we may see that market wouldl ike to discount atleast two interest rate rises, at the moment market has not yet discounted these fears fully.
