Bounce
S&Ps are still trading lower on the day, but have bounced off the lows to trade currently at 1203. This market needs to get above 1204 for the bounce to take hold. On the downside, if this market breaks under 1200 again, we’ll look for sellers to become aggressive under 1198.
Earlier pressure on the Dow and the Tech sector caused a move to the downside. Traders in the pit were heavily short this morning, which added to the downside pressure.
Keep in mind that the 1201-1198 area was heavily traded. On the upside, we have resistance up ahead at 1204-1205.
NASDAQ is trading at 1663, down on the day. Above 1670 we could see a short-covering rally back to the 1680 area. Keep an eye on the proxy stocks, especially
(
MSFT |
Quote |
Chart |
News |
PowerRating) for a hint as to where this market is going.
Right now this market is in a slow grind, so be careful during the lunchtime trade. On the downside, if the selling should accelerate the target is 1650.