Back In Action
After a holiday weekend, S&Ps were trading down 280 at 1327.50 this morning, just below a critical area for the upside. S&Ps must get above and stay above 1328 for the upside momentum to continue.
We have critical resistance at 1329.50 and then 1330.50, 1333.50 and a key area between 1337 and 1338. Above that we have 1340, 1341.50 and a major objective at 1343.50. The high on Friday was 1345.
On the downside, we have 1326.50, 1323.50, a key area at 1322.50, Friday’s low of 1322, 1319.50 and a major area at 1315.50.
NASDAQ was trading unchanged at 2540. We have resistance between 2548 and 2560. If we get above this, 2567 was the afternoon high on Friday and should pose some small resistance. Above that, we have resistance between 2585 and 2600.
We have support at 2510 to 2490. Friday’s low was 2491. If we get below that level, 2475 is limit down. If we move below that, we have support between 2455 and 2440. Only a settlement below 2450 is negative.
As for the Dow, same old story: Below 10,400 is bearish, and above 10,800 we’re bullish. This market was the worst performer on the week last week, as money flowed out of Dow stocks and back into the techs. We do not expect to see such a wide divergence this week, as last week the Dow as down 1.5% while NASDAQ was up 9%.
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