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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (37387)	3/21/2001 4:25:42 AM
From: IQBAL LATIF	Respond to of 50167

Fed cuts are not enough says the market as short sellers dominate the action The Dow Industrial Average lost 238 points, while the Nasdaq Composite lost 94 points.I would think that a quick run to the 1128 area is on cards on SPX. Japan tonight holds the key for any chances of a rally back to 1180 SPX resistance by tomorrow. Traders on Wall Street did not like the Fed’s one-half point cut in both the Fed funds and the discount rate. Wall Street was jawboning the Fed for a 75 basis point cut. That virtually guaranteed a one-half point cut, because the Fed does not want to appear to be targeting the stock market. Over the short term, traders are watching Dow 9600 and 1100 on the S&P 500. Both levels must hold to prevent a further sell-off by market technicians. Traders will be watching Japan’s stock market overnight. A sell-off in Japan would probably produce another bad day on Wall Street tomorrow. More rate cuts are coming. Possibly a 1/2 point reduction before the May 15 FOMC meeting. Both the Nasdaq and the S&P 500 remain vulnerable to sideways or lower prices into early spring due to continued weakness in technology and telecom stocks. It would take multiple closes above this year's downtrend lines to confirm both markets have posted short-term bottoms. If the decline in the Nasdaq continues, a test of the long-term uptrend line crossing near 1780 is its next target. The Dow also closed sharply lower on Tuesday as investors voted their disapproval with today's 50-basis-point basis cut. The Dow's inability to sustain Monday's short covering bounce followed by today's key reversal down leaves the door open for additional weakness during the last half of March and a possible test of last Fall's low crossing at 9654.60 later this week.