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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (29780)	12/5/2000 1:11:41 PM
From: Johnny Canuck	Read Replies (2) \| Respond to of 68627

Market Update as of 12/05/2000 12:38 EST There's Light At The End Of The Tunnel By: Kevin O'Grady Stocks rallied sharply today after Fed Chairman Alan Greenspan acknowledged that the economy is slowing and said that the Fed would step in if it felt the economy is in danger of slipping into a recession. His statement was more than even the most optimistic bulls expected. Most felt that at best the speech would contain subtle indications that the Fed’s focus is shifting away from inflation. While it is not expected that the Fed will reduce interest rates at the December 19 meeting, a softening in bias would be in order, with an easing coming in the first few months of next year. Considering the enormity of Greenspan’s statement, the possibility does arise that the NASDAQ has bottomed. However, it will be tough to say for sure without a retest of resistance at NASDAQ 3000. If the NASDAQ can trade through 3000 it will show that investors are confidant the Fed can complete the soft-landing scenario. If resistance holds, investor will refocus on earnings and the possibility that the Fed went too far with its rate hikes and can’t correct its mistake in time.