One step back in mini S&P.(Hot Commodities)(Standard & Poor's)(Brief Article)

Futures (Cedar Falls, Iowa), September, 2003 by Collins, Daniel P.

After the spring-time rally that took the S&P 500 beyond 100, the market has been mellowing out this summer. E-mini S&Ps have been stuck in a relative narrow channel buffeted by conflicting economic numbers.

Solid earnings reports and positive data on the economy have been tempered with continued weakness in employment data. Given the soft employment numbers, analysts feel the bulls got ahead of themselves and the marker is due for a correction, albeit a minor one.

Mike Cavanaugh, broker at My Futures Online, expects a short term dip in the S&P noting that the fundamentals don't look that bad. Cavanaugh is calling for a 50% retracement of the May high by mid September. That would put the E-minis at 930.00, which he sees as strong support.

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