Anybody Have A Match?
All we need in the S&P futures market is something to ignite the upside and really get this market moving. This morning, S&P futures were trading down 500 points at 1513.80, just above a major number at 1513.50.
Below that, we have 1512, 1510.50 and 1509.50, which is a critical number and yesterday’s low. Then we have 1507, 1505.50, 1503 and 1500. On the upside, for this market to improve, we must get above 1517. Above that, we target 1519, a key at 1520.50, another key at 1521.50, and then 1523.50, 1525, 1526.50, and 1530.
NASDAQ is off 1000 (10.00) points at 3966.50. Today our first key area is 3945. Below that, we have a triangle breakdown that we think will lead to 3895, and most probably a run to 3861, which is a 61.8% retracement of the recent up move from 3773 to 4005.
Along the way, here is our support: 3932 to 3925, 3915-3908, and 3885-3878. If we get below 3861, 3850 is the last line of defense. Any hourly close below that level is bearish and targets a run back down towards a full retracement of the up move.
On the upside, we see resistance at 3989 all the way to 4020. If we get above 4020 — especially on a closing basis — it’s very bullish. Intraday above 4020, we have a key resistance at 4045- 4051. Above that level, 4080 to 4090 should hold this market. If it does not, the next obvious target is 4135, our July high.
The Dow had somewhat of a retracement day yesterday, and is now over 100 points off the high from Monday in the cash. We continue to see more possibilities on the sideways to downward move. We certainly feel 11,100 to 11,050 in the cash is very strong support.
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