Keep an eye on todays Existing Home Sales figure out at 10am. If the housing market shows any signs of stabilization, this rally could get some legs. Jobless Claims came in pretty good this morning but it’s a weekly number and traders don’t focus so much on that.
Some technical pivot points to keep an eye out for: The first level of resistance is 12,510, which is the previous major low. This also roughly marks the .382 retracement from the last leg. Should we break there (doubtful) look for a test in the 12,800 area, which is the previous support line and also the .618 level. The downside is simple, break below the 11,600 level, and look out below.
Market opened flat today. Most traders will be on the sidelines waiting for the direction to make itself evident. Also, we’re about a week off from both the FED’s next meeting and January NFP numbers, which everyone in the world will be watching.
January 24th, 2008 at 10:44 am
I would say the market is expecting the fed to cut again that is why we will have an up day again today. I hope you got back in the market with your 401K, it’s a shame to throw money away.
Now lets sit tight and enjoy the rollercoaster.