Anticipation…
After the release of PPI, the markets are eagerly anticipating next week’s one-day Fed meeting. Will we see more than 50 basis points?
The market rallied briefly about 500 points initially and then fell back. Now, S&Ps are up 3.75 at 1188.40. For the last two days we’ve seen a lot of trading between 1180 and 1192.
On the upside we have 1192, a major at 1196, and then 1999.50 to 1200, which is critical.
On the downside we have 1186.50, a critical at 1184, a major at 1182.50, 1179.50, 1177.50, 1172.50, 1169, and the weekly low of 1165.50.
NASDAQ was trading up 12 points at 1727 after a very bearish day yesterday.
Today our key is going to be right off the bat, with support between 1710 and 1695. The contract low is 1698. If we get below that, 1650 is the target, and today that coincides with limit down.
Resistance is expected between 1730 and 1750. If we get above this, we think the market can make a run toward the 1785 level. We have scale-up resistance between 1775 and 1810. The market needs to close above this zone to get short-term pressure off.
The Dow was able to close above 10,000 as we rallied 58 points. Not exactly a sparkling move considering the magnitude of the selloff the past four sessions. Keep your eye on the financials, as they bounced quite well yesterday.