Market Analysis for Oct 21st, 2003

The overwhelming blanket statement I have about the markets this morning is you have three different moves going on in three different indices. The Dow is down 25 points as we speak. The S&P is up about 1 point, and the Nasdaq is the leader, up 13. So technology is leading the way because of recent high-profile earnings reports such as Texas Instruments from last night, and before that IBM, and before that Intel.

So the technology speculators, in my impression, are the ones driving the Nasdaq indices higher, whereas the S&P is a little sluggish compared to the Nasdaq, and the Dow is taking a breather. It may not be taking a breather of any significance, but it certainly is doing so today while the other indices are flying.

Going into a more micro view, the E-Mini S&P is stuck below 1050 and seems to have a bookend at 1040. Whichever side of that range goes, I think there'll be a significant continuation move in the direction of the breakout. Right now it's hard to imagine it breaking down, but until it gets above 1050, you just don't know, as it's in a 10-point range. Above 1050, it's hard to imagine it not going to test the October 15 high at 1055