Until S&P 1005 or 1015 is breached, I'm chilly willy!
The opening bell tolls and another day in the fray is underway. Initial observations include the action in Lehman Brothers (LEH:NYSE), which is down on "great" numbers. That's coloring the rest of the financials and, by extension, the S&P. This sloppy sector was brushed off yesterday, but don't underestimate the importance of the piggy banks please. They led us up, and if (big if) they gain weight, it warrants attention.
The N's over S's tone continues with pharma taking a break (stopped at DRG 350), storage and semis holding an early bid and the biotechs mixed. Retail and the internets also act OK early, and the morning breadth is skewed slightly to the positive.
Watch S&P 1005 (support) and S&P 1015 as resistance. For the techs, NDX 1260 is the previous exhaustion high while 1210ish is a trendline support.
Keep half an eye on General Electric (GE:NYSE) (heavy betty) and remember that tomorrow's expiration is coloring the flava flave. There are two camps here -- the "they're not rallying on a good LEH and economic report," vs. the "they're just resting before groundhog day begins." Where do I stand? I think the banks or important and that's my current skew
As always, I hope this finds you well.
Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at firstname.lastname@example.org.
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