Bad News Bears
A bearish tone to the market this morning on some bad news, earnings wise, that is weighing down the S&P and NASDAQ.
S&Ps are at 1358.50, down 600.
On the downside, we have support levels at 1355, a key area at 1353.50, 1351.50, major support at 1350.50, a cluster from 1350 to 1347.50, a small number at 1345, a key number at 1343.50, which is also at Monday’s low.
On the way up, we have a key at 1360.50, a major at 1362, and a critical area at 1364.50 to 1365. We have to get above this area to resume a bullish mode. Our pivotal area this morning will be 1358.50 to 1361.50.
NASDAQ was trading at 2560 down 53.5 handles on the earnings news. Yesterday, was a very sloppy day all around for the NASDAQ, as earnings fears began to weigh on this market. Now, we are left with a gap that the market seems to be targeting from Jan. 16 between 2520 and 2555. Globex low was 2548.50, which is limit down.
For today, under limit down, we have support between 2525 and 2510. If we fail, look for a move down to 2470. We have some light support between 2485 and 2465. Under that, 2450 is the next stop.
On the resistance side, we have 2585 to 2605. If we get above that, we’ll fill the gap from today’s open at 2613.50. The next area is 2625, which is key as this is where the market went bid off JDSU earnings yesterday in the last three minutes of trading. If we can get above this zone, short-term pressure is off and look for a reversal trade and a move back to 2700. Along the way, we have resistance between 2655 and 2670.