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

To: Johnny Canuck who wrote (35042)	11/7/2001 11:59:47 AM
From: Johnny Canuck	Respond to of 68132

Wednesday's Opening View 9500, 1100, 1800. Don't those trailing zeros just give you're a warm and fuzzy feeling? Hence the label "psychologically significant." Following the somewhat delayed announcement of the Federal Reserve's 10th rate cut this year, which removed another 50 basis points (cutting the rate to 2.00 percent), the markets also exhibited a delayed response. It took about 40 minutes for traders to decide on a direction. At that point, the markets exploded to the up side with a strongly positive finish to the session. The Dow Jones Industrial average (INDU – 9591.1) surged above the 9500 level marking just the second close above that key level since September 17. The S&P 500 Index (SPX – 1118.86) completed its second consecutive close above the 1100 level, while the Nasdaq Composite Index (COMP – 1835.1) closed above 1800 for the first time since the end of August. As the indices move above these key levels and closer to potential resistance, we may find them facing a critical decision: pursue their advances or retreat. The December futures contracts on the INDU, SPX, and NDX have been hesitant to show a follow through of yesterday's action. Trading both off of their high an their lows, they have remained below their respective fair value numbers for the entire session. For your visualization, the highs and lows: SP/Z1 (1118/1108.70), ND/Z1 (1526.5/1509.5), and DJ/Z1 (9560/9486). The only report due out before the open that could offer some direction will be the 8:30 a.m. release of the Third-Quarter Productivity and Costs. The last report showed a 2.1 percent increase while current consensus expects a similar gain of a 2 to 2.1 percent increase. After the open, at 10 a.m., we get a look at Wholesale Inventories for September. August showed a decline of 0.1 percent. Analysts expect a continued decline by 0.3 percent for September.