Back And Forth
In the late morning, we would expect S&P futures to trade “back and forth” around the 850 level. The area between 847.50 and 852.50 is a neutral zone. Above or below this area, we would expect the action to pick up.
On the upside, if they get over 852.50, S&Ps should should try for the high area at 854-855. As we mentioned in the Morning Meeting, the area between roughly 850 and 854 has been a heavily traded zone, and we have a pivot area at 853.50. Above that, we see resistance/targets at 857 and 859.50-860.
On the downside, if S&Ps go below 847.50, they should go for the low area at 845.50-844, then 842, and 840-839.
For Nasdaq futures, the neutral area appears to be 1020 to 1028. On the upside, above 1028, they should try for the high at 1033-1034, and later 1036. On the downside, if they go below 1020, look for 1018, then 1016 and later 1014.