Calm After A Volatility Storm
S&P futures are trading at 1029 in a significantly quieter market in the wake of the FBI announcement of the arrest of a bomb suspect.
As the market digests this news, expect a choppy trade dominated by the pending rollover. On Thursday, September becomes the front month in the futures. Earlier, S&Ps put in a new low at 1024.50 and a high of 1035.30 in a volatile trade. The area from 1026 up to 1031.50 is a netural zone.
As we stated in the Morning Meeting, we have resistance at 1031.50-1032, and then 1036.50.
Nasdaq is trading at 1144. The market is holding in a range of 1141 to 1143 after an extremely volatile trade this morning. We see the area from 1137 up to 1157 as a large neutral zone in which we would expect a choppy, two-sided trade.
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