A New Start
S&Ps are trading at 1149.40, up 20 cents, based on the end-of-the-month fair-value settlement of 1149.20.
For today on the upside, we have a neutral area between 1147.50 and 1152. Above 1152, we shift to a moderately bullish stance with an upside objective of 1158. Along the way to 1158, we have resistance between 1154.80 and 1156.50.
On the downside, if get below 1147.50, which is the low end of our neutral zone, we anticipate a move to 1141, retesting Wednesday’s low area. Along the way, we have support between 1145 and 1144.50 and under that, a band of support between 1142.80 and 1140.
Nasdaq is trading up 11.50 at 1595. The key level for the Nasdaq is 1588. Above it, we have a bullish bent; below it, a bearish one. Above 1588, the first key is 1602. If we trade above 1602, the key is going to be holding support between 1595 and 1597. Back above 1602, our target becomes 1623.
On the support side, below 1588, the first obvious area is going to be 1584 to 1583. Settlement was 1583.50. Below this, we think things could heat up to the downside with a move to 1570. On the way, minor support will be found bewteen 1577 and 1575, and then Monday’s low of 1568.
As for the Dow, late sell programs knocked the market down on Monday. We still closed the year above 10,000. The key in the short term is going to be 10,150 on the upside, and on the downside, the ultimate support is going to be 9920 down to 9850.