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Tuesday, February 5, 2008

ISM Causes Market Dive

The SPX made mincemeat of 1360 right at the open. It tried to find support at 1350, failed, and 1350 became resistance. We are now looking for support around the 1330 area.

There was something unusual in reading the Yahoo Finance news accounts this morning. Not that the Service sector employment got crushed, although that is bad news (if the Government stops hiring, we're doomed). It was this little item:

"Tuesday's report was issued roughly an hour earlier than its usual 10 a.m. release because of what ISM called "a possible breach of information."

A spokeswoman for the trade group said it decided late Monday to release the index early, before U.S. markets opened on Tuesday, because someone who was familiar with the contents had inadvertently made a comment about it on Monday night."

A little market manipulation here maybe?



The Russell just barely broke support above 700. It will try to find some before it gets below 690, otherwise, we could be looking at a retest of the January lows.

The Nasdaq is right on support here. I think I might be looking for a gap down and bounce up tomorrow.

The VIX bounced right of support at 24. There is some resistance around 29.5. If we get a gap down tomorrow this will likely open above resistance, but will it stay above it?

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