At Fair Value
S&Ps futures are trading at 1151.80, down 1.40 pts, but right in line with fair value.
For today, we have a key support zone between 1146.50 and 1150. Above this zone, our major zone is 1176. We also have a strong cluster of resistance between 1153 and 1156, the same as yesterday. Yesterday’s high was 1154.50.
On the downside, if we fail to hold our support zone between 1150 and 1146.50, the first downside target is 1140.50. Along the way, 1144 to 1143.50 is support, and then remember we have a leftover support zone from yesterday from 1141.50 to 1140.50, which is our target.
Nasdaq is trading at 1617, down 16 points. On the support side, we have an area within Monday’s opening range from 1616 to 1613. If we get below this, look for the Globex low of 1608. We have support between 1610 and 1606. If we get below 1606, we’re looking for Friday’s low area to trade between 1597 and 1595.
On the upside, the first key is going to be getting above 1633. We have resistance between 1625 and 1628, and then 1631-1635. There was large volume on the close yesterday around the 1635-1633 level. We anticipate that this will be a very difficult zone for the market to get above.
The Dow settled just shy of its 200-day moving average in a strong rally that was led by the financials and
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PowerRating), which was one of the few tech stocks to shine on the upside yesterday.