Aiming For The Lows
S&Ps are trading at 885 after a disappointing ISM report this morning added more pressure to the market. Weakness in the Dow underscores the bearish tone of this market. For the S&P futures today, we would have to sustain trading above 891.50 in order for the bias to get to neutral.
On the downside, we have a target zone at 881.5-875.5, which has been heavily traded in the past. As we stated in the Morning Meeting, below 894 the target is 880. With any settlement below 880, we would anticpate a move to test the August lows of 833 in the cash.
Nasdaq put in a new low on the day by 1 handle at 904. The trade has been very choppy between 915-905, failing at both ends of the range on numerous occasions.