After The Sell-Off
S&Ps are trading up 1.00 at 1155.50 following a sharp sell-off yesterday afternoon. For today, we see this market is in a trading range between 1148.50 and 1163.
On the upside, we have 1158.50, 1160, a critical area at 1161.50-1162 and then 1165, followed by another critical area at 1167.
On the downside, we have 1152.50 followed by a cluster of support at 1149 to 1148, and then 1143 and 1140.50.
Nasdaq is trading up 7.00 at 1662. For today’s trade, the Nasdaq must get back above the 1681-1685 level to shed the bearish undertones of yesterday’s break. On the way, the first resistance zone is 1668-1672. Above that, we have a small area of resistance between 1676 and 1677.
On the downside, the first key support should be 1658-1653. Below this, we’re looking for a retest of Tuesday’s low of 1645. We have ballgame support between 1649 and 1645. Encompassed in this zone are the lows from Jan. 4, Jan. 9 and Jan. 8.
The Dow settled in negative terrority for the third session in a row. It must now defend this 10,000 area.