Waiting for Greenspan
By Paul Cherney
I currently do not have any indicators offering predictive signals. I can't write fiction here -- that's the way it is.
Federal Reserve Chairman Alan Greenspan speaks on Capitol Hill on Wednesday and he should offer words of encouragement about the economy, which I think the markets should interpret in a positive fashion.
I expect a labored move higher in Wednesday's session.
The Nasdaq has immediate resistance at 1777-1791. There is a gap in the price chart which was created by the downside opening on Feb. 19, 2002. That gap is 1791.01 to 1801.67. I still expect this gap to get filled. Nasdaq resistance above the 1803 level becomes thick at 1820-1847. I think any print above the 1803 level will bring sellers to the market, unless there is a headline of indisputably bullish importance.
The Nasdaq has a well defined band of intraday support at 1752-1734; there is a focus of support inside this band at 1747-1740.
The S&P 500 has well defined intraday support at 1102-1093. The "500" has thick resistance at 1116-1139.50 with a focus of resistance at 1126-1130.
Cherney is market analyst for Standard & Poor's