Wall Street turned into a Bullring...


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Bulls in Bears out must be the slogan shouted in Wall St. today..

Dow Jones 10899 +339
Nasdaq 2890 +274
S&P 500 1377 +52

Interestingly when the time comes positive news start from even the least expected or most unexpected sources...while everyone expecting a rebounce to be started by Bush's victory, it was actually from Federal Reserve leader Alan Greenspan's positive comments bringing the bulls out and keeping the bears quiet, inciting a savage, broad-based rally..

Greenspan spoke before America's Community Bankers Conference in New York and hinted at a shift in monetary policy to a neutral stance on rates, which could pave the way for future rate cuts...

The other two reasons behind the rally were: The Florida court ruling Monday, which increased hopes that an end to the presidential impasse is near; deeply oversold conditions signaling the major averages were ripe for a rally...

Most tech stocks shot up, pushing aside earnings worries...

This time it was only few mostly defensive stocks - like drug, healthcare, consumer, utility and gold flickering red on the screens..

Those analysts who were talking about 2400-even 2200- support level for Nasdaq only a couple of days ago started to draw our attention to 3000 resistance level..

Todd Gold, technical strategist at Gruntal & Co. said "I expect significant resistance for Nasdaq at 3,000. It will be hard to take out that level on the first try. I expect it to act as a near-term ceiling,"

Whatever at least we did witness a rally before forgetting how it feels...the only question being if it is going to be a short or sustained one...

Read Greenspan's words carefully...they are much more important than Bush's presidency or tech stocks` being sold out...

[This message has been edited by rizgar (edited 05-12-2000).]

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