Careful Of The Short Side
For today’s trade in S&Ps, I’d be a little careful of the short side in light of tomorrow’s Retail Sales report and Greenspan’s testimony. Some shorts may be looking to square up their positions.
S&Ps are trading down 130 at 1320.20. On the downside, we have support at 1319.50, a key area at 1316, then Friday’s low at 1315, 1312 and major area at 1310. On the upside, we need to get above 1326 and stay above it to get out of immediate danger.
We have resistance at 1323, 1326, a key area at 1329, a critical at 1331.50, then small at 1333, and a major objective at 1335.50.
NASDAQ is down 9.00 at 2268. Interesting, or depressing, to note — depending upon what you’re looking for — is that after being up more than 13% in January, the NASDAQ is now only fractionally higher on the year. The S&Ps are actually down fractionally on the year, and the Dow is essentially unchanged.
For today, we have support between 2265 and 2250. Under that, odds are for a move to 2200. We have limit down at 2212. We have light support between 2225 and 2220. If we were to break 2200, 2170 is the intraday low from Jan. 8, and we would target that area.
We have resistance from 2280 all the way to 2305. Above that, look for a move to 2350. We have resistance between 2345 and 2360. This is a very important area. If we can close on an hourly basis above this zone we think the short-term pressure is off and we would look for some retracement of the recent down move — most likely targeting 2520.
The 11,000 sellers have overwhelmed the Dow. And now we need to hold above 10,600. We still like the Dow as long as we close above 10,600.