Energy, Tech May Move Indexes

 |  Includes: BIDU, DIA, FSLR, HPQ, IWM, QQQ, SPY
by: optionMONSTER

By Bryan McCormick

The indexes went on a bit of a ride yesterday, though it was a constrained journey by any measure.

While the indexes fought back from a dip created when Standard & Poor's announced its downgrade of Spain's sovereign credit rating, they did not move very far on the upside. Support held, however, and that means levels remain unchanged for the indexes today.

In after-hours trading yesterday, the winners appeared to be First Solar (NASDAQ:FSLR), Akamai (NASDAQ:AKAM), and Baidu (NASDAQ:BIDU), which jumped 14 percent to a lifetime high. Alternative energy and Internet stocks could get a boost today as a result.

After the market closed, Hewlett-Packard (NYSE:HPQ) announced it would acquire Palm (PALM) in a deal valued at $1.2 billion, lifting the smartphone maker's stock by 26 percent in after-hours trading. The company had been bandied about as a likely takeover candidate for some time, though most of the speculation had centered on Research In Motion (RIMM) as the likely suitor.

HP was down fractionally in post-market trading after the news, as was RIMM. Tech may well outperform today given the positive news.

Nasdaq 100 (NDX)

First support is at 2000.77. First resistance is now at 2039.50.

For the Nasdaq 100 Index Tracking Stock (QQQQ) first support is at $49.20. First resistance is at $50.21.

S&P 500 (SPX)

First support is now at 1175.12. First resistance is at 1197.41.

For the Standard & Poor's Depository Receipts (NYSEARCA:SPY) first support is at $117.60. First resistance is at $120.

Russell 2000 (RUT)

First support is now at 715.62. First resistance is now at 738.28.

For the iShares Trust Russell 2000 Index Fund (NYSEARCA:IWM) first support is at $71.46. First resistance is at $73.83.