Downside Pressure
S&Ps are trading at 924.30, and well below our pivotal area for the day. We see the 931-932 area, as mentioned in the Morning Meeting, to be critical for today’s trade.
At mid-day, we do not expect to see much downside extension. However, this market remains vulnerable below 925. To get back to neutral, it would have to as a minimum trade above 927. If S&Ps were able to get above 928, we would expect to test the 931-area.
Nasdaq is trading at 1113, and is vulnerable as long as it is below 1118. To get out of trouble, Nasdaq would have to get back above 1124. If that occurs, the upside targets are 1126 and 1130.