Opening surge on tap; Citigroup, Dell rise overnight
Small-cap stocks are expected to open sharply higher this morning, boosted by gains overnight in Europe and Asia, particularly in the banking and commodity arenas. On the U.S. front, Citigroup Inc. (NYSE:C) and Dell Inc. (NYSE:DELL) were in the spotlight as Citigroup leaders are meeting to discuss ways to shore up the firm and Dell beat the earnings forecast. Stock index futures were up about 2% ahead of the opening, which suggests the Russell 2000 (NYSE:IWM) will open near 393.
The World Index was up about 0.8% overnight, a nice recovery, but tame in the face of a 12% slide for the week and a 22% rout so far this month. Asian stocks were up about 3% and emerging market shares bounced about 2.5%.
Crude oil prices rose about $1 a barrel, clawing back above $50 dollars after sinking to a low of $48.25, the lowest point in more than three years. Crude oil prices are off about 10% this week, sinking in tandem with equities on demand worries. Energy stocks were hammered Thursday, but stand to bounce early this morning if the market can sustain overnight gains.
With the market poised for a bounce today, it’s worthwhile to take a look at likely intraday resistance points. The first point to watch is at 396.50; above there, resistance comes in at 403.50 and 413.00. On the downside, 384.86 (Thursday’s new bear market lows) is the only clear support to watch off a higher opening.
The World Index was up about 0.8% overnight, a nice recovery, but tame in the face of a 12% slide for the week and a 22% rout so far this month. Asian stocks were up about 3% and emerging market shares bounced about 2.5%.
Crude oil prices rose about $1 a barrel, clawing back above $50 dollars after sinking to a low of $48.25, the lowest point in more than three years. Crude oil prices are off about 10% this week, sinking in tandem with equities on demand worries. Energy stocks were hammered Thursday, but stand to bounce early this morning if the market can sustain overnight gains.
With the market poised for a bounce today, it’s worthwhile to take a look at likely intraday resistance points. The first point to watch is at 396.50; above there, resistance comes in at 403.50 and 413.00. On the downside, 384.86 (Thursday’s new bear market lows) is the only clear support to watch off a higher opening.
About the Author
Kevin Pendley covers the Russell 2000 index for SmallCapInvestor.com and writes a weekly technical analysis column.
Read More
(click a star)
Enter comment: