Capitulation?
S&Ps were trading up 5.80 points at 1197.30. This is a critical area that we need to stay above just for this market to look a little better.
Above that we have 1200 and a critical area at 1203-1205. We really have to get above 1205 for this market to start perking up.
On the downside, we have 1193, 1190, yesterday’s low of 1186.50, a key at 1184, and a major at 1180.
The NASDAQ was currently trading at 1740, up 26.50 on the day. Yesterday, downside volume in the NASDAQ led upside volume by a 19-to-1 margin — on top of Friday’s 10-to-1 margin. Capitulation?
For today, we’re going to have support between 1715 and 1695. If we take this out, 1650 becomes the target. We have limit down today at 1652.50. Along the way, under 1695, expect support between 1670 and 1660.
Resistance is from 1750 to 1760, and then 1772 up to 1780. If we can get above 1780, it could lead to a short-cover rally, which could take us up toward the 1850-level.
Dow fell out of bed with the rest of the market yesterday, posting its fifth largest point loss, as we were down 436 points. If this market were to break 10,000, we would certainly expect to see some fresh buying step in.