A Cautious Trade
We expect a cautious trade today in advance of Friday’s Employment Report, and also earnings that are filtering into the market.
S&P futures were trading at 1483 down 750. We see support early today between 1478 and 1480. Our morning pivot will be 1486 to 1487. If S&Ps can stay above 1480, the market has a chance to push higher, taking out Monday’s highs of 1491 and moving to the 1495-1496 area. We see a large cluster at 1497.50-1498-1499.50, and also resistance at previous highs of 1503, 1506, and 1512.40, which was the June high.
On the downside, if S&Ps go below 1479 and do not get back above 1484, they should move to the 1474-1473.50 area. If that doesn’t hold, we see support at the cluster between 1468-1465. Below that look for 1462.50 and 1460-1459.
NASDAQ futures were trading at 3814 down 48 — within a cluster of moving averages between 3805 and 3815. Above that, there is another cluster of moving averages is between 3840 and 3848, and a third cluster resides between 3917 and 3927.
If NASDAQ can get over 3875 and then hold 3835, the market should be on its way to the 4000 area, with targets at 3900-3905, 3930-3935, 3950, 3980 and 3992. If NASDAQ stays below 3820, it should test 3800-3805, and below that 3780, 3750, and 3720-3715.
The Dow is still within a range between 10,258 and 10,863. A move above 10,575 would be an upside breakout, targeting 10,763, and a failure around 10,575 could push the Dow back toward 10,400-10,450.