Waiting for Greenspan

With investors focused on the Fed chief's appearance on Capitol Hill, Wednesday's session should see a labored move higher

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

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