At Friday’s Low
S&Ps are trading down 2.70 at 1145.10, in line with Friday’s low at 1145. We are sitting below resistance between 1148 and 1152, which was the cluster of support that we stayed above most of last week until Friday when Greenspan spoke.
On the upside, we have 1146.50, 1148, a key area of major resistance between 1150.50 to 1152. On the downside, we have 1143, and a key area of support between 1139.50 and 1140.50.
Nasdaq is trading down 11 at 1635.50. That’s just above Friday’s low of 1631. For today, we have 1638 to 1645 as our critical zone. If we get above this zone, we’re going to look for a move back toward 1660. Along the way, 1652 to 1655 is resistance.
If we fail to get above 1645 in our resistance zone, between 1645 and 1648, we anticipate some early selling with some momentum to it as traders will try to build on Friday’s decline. The first downside target is going to be 1618.