After The Sell-Off
S&Ps are trading at 1081, up 4.00 points and just a touch above fair value, as we settled 3.17 pts below cash yesterday on late-session selling. For today in the S&Ps, on the upside, our first key area will be found between 1080 and 1083.50. This will be a transition zone for the market. Above this zone, we should begin to retrace some of yesterday’s final-hour downdraft. First resistance is 1084.70 to 1086.50.
On the downside, if we fail to sustain trading in our transition zone, our first stop should be 1075.50. That is 1.00 points below yesterday’s low of 1076.50. The Globex overnight low was 1075.50. On the way to 1075.50, we expect a very choppy trade.
Nasdaq is trading up 13 points at 1428. Aggressive final-hour selling in the market was led by the
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PowerRating), which settled down 5.0%. For today, we’re opening up in a key area left over from yesterday afternoon between 1425.50 and 1433. Above this zone, resistance comes in between 1438 and 1445. If we get above 1445, there is a potential for a move toward the 1460 level, with resistance between 1453 and 1458.
On the support side, expect to find support between 1419 and 1416, below which 1410 should trade. That is below yesterday’s low of 1413. We have minor support between 1411 and 1409.