Wednesday, January 18, 2006

Tokyo Halts Trading

Reality seems to be appearing finally in these frothy, wildly overvalued markets. The Nikkei had to shut down early due to overwhelming selling pressure. The GLOBEX is limit-down on the S&P and NASDAQ futures (I am typing this at 2 in the morning, so the market doesn't open for over 4 hours).

Quite a difference in the headlines this morning versus the absurd obsession from just a week ago.


Anonymous said...

I am curious to know if you see the areas of previous resistance as critical points of support in the near future. I see an area of support around 2280 for the NASDAQ, 1270 for the S&P 500, and 10710 for the Dow.

Tim Knight said...

Your Dow support seems reasonable; NASDAQ is already beneath the support you cited based on today's downdraft, and I'd say the S&P is pretty weak and wouldn't hold up well at the level you suggest.