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Looking For The Retest

 February 06, 2008 12:32 PM

Good morning. Traders are hoping for a Wednesday bounce following yesterday's meltdown.

There isn't a whole lot of news to concentrate on, but some are pointing to good earnings from Disney (DIS) and a report on productivity as positive catalysts. Meanwhile, the CEO of Toll Brothers (TOL) still doesn't see much light at the end of the tunnel for the housing market. In overseas trading, Asian markets fell dramatically but Europe has been doing better.

Premarket gainers:DIS, JDSU, ORCT, TMO, MFLX, ICGN, OFI, TGAL, MICC, SGMS, COIN, PNSN, IIG, IOM, IVGN, TBSI, MPWR, PCU, RIO, RMBS, INSP, CNET, SIGM, CSUN, TGAL, GDHX, CPSL, VIP, and SOLF.

Premarket losers: FORM, IDMI, NSR, IACI, BHP, DISK, DBTK, TZOO, NFP, USNA, RVBD, SYNA, CREE, RSYS, GM, MANH, DBTK, CVLT, CAKE, RATE, NFP, HAR, and QSFT.

Bernanke is holding a closed-door meeting with Senator Dodd this morning and a news conference is likely to follow the meeting around a half hour from the opening bell. After that, there's not much on the docket except a closely watched earnings report from Cisco Systems (CSCO) after the closing bell.

We'll see if the market can find some support near the 1320 to 1340 level in the S&P. A break below 1320 would set up for a retest of January's lows that so many are looking and waiting for right now. Have a wonderful Wednesday!


Rich
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