Can We Sustain A Rally?

S&Ps are up 7.00 points at 1254.50. We have to spend most of the morning above 1256 for this market to sustain a rally.

Above that, we have a key area at 1259.50, then 1262 and a critical at 1265.50.

On the downside, we have 1250.50, 1248, a critical area at 1244.50 and 1242.50, the area that was targeted on Friday afternoon as a pivotal level to put an end to the short-term downtrend.

NASDAQ was trading at 2100, up 42.50, and continues in the reversal that we saw in the last 90 minutes of trading on Friday.

We have support between 2076 and 2065. If we get under that, 2050 to 2040 is the next support zone. If we get under 2040, there is a very good chance that we’ll trade down to 2000.

We have resistance between 2097 and 2105. Above that, look for 2130. We have resistance between 2125 and 2135. Above this, the target is 2200.

The Dow held 2 points above the intraday low made on November 24, 2000, of 10,292. The low on Friday was 10,294 before we rallied to settle at 10,442. Bear in mind, we said the market needed to settle under 10,300 for us to turn bearish.