Choppy And Two-Sided
S&Ps are trading at 1070.50 in a choppy, two-sided trade after breaking out of a range of 1066 to 1069.50 that we saw this morning. If we can hold above 1069, the target is 1076 on the upside.
This has been a violent and choppy trade with strong selling and then short-covering. We expect things to quiet down at mid-day. Be aware that with Employment tomorrow, we may see some squaring of positions in the afternoon today.
Nasdaq is trading at 1399, just shy of the psychologically and technically important 1400 area. We need to spend more time over 1400 for the upside to take hold. If we do, we have scale-up resistance from 1405 to 1415.
On the downside, we have found support around the 1373 level, at which short-covering took over to bring this market back up.