http://www.businessweek.com/stories/2001-05-06/holding-pattern

Markets & Finance

Holding Pattern


By Paul Cherney The underlying trend for higher prices is running out of momentum. I think Tuesday's session has a good chance of being like Monday's; little volatility and no commitment to direction. There is a possibility that the Nasdaq could establish a high this week which represents the upper edge of a trading/consolidation range which could last a few weeks.

There should be a floor under prices in anticipation of a Fed rate cut next week, but Q1 Productivity (due on Tuesday), and the Producer Price Index (due on Friday) are potential wild cards as to future rate policy by the Fed. These reports have the potential to create jagged price movements.

The Nasdaq has immediate resistance 2174-2233, the next layer of resistance is 2242-2356 with a focus of resistance 2253-2310. Immediate support remains 2169-2088. There is a focus of support 2137-2095.

The S&P 500 STILL has immediate closing resistance in the 1253-1273 area. The next resistance is 1300-1341. Immediate support remains 1238-1223. Cherney is Market Analyst for Standard & Poor's


Hollywood Goes YouTube
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus