Choppy Start
We expect a choppy two-sided market for the first hour of S&P futures trading this morning. Currently, S&Ps are trading at 1007, down 1.50.
On the upside, we have resistance at 1010, 1012.50, 1015, 1017.50, 1020, and a major upside target at 1025.
On the downside, we have 1002, 1000, 998.50 and 996. The 996 to 998.50 are was heavily traded in the first hour before the market continued its upward path.
Nasdaq is trading up 4.00 at 1198. On the upside, we have resistance between 1203 and 1206. Above that, we have yesterday’s high of 1211, at which a resistance zone begins that extends to 1216. A major upside target is at 1226.
On the downside, we have support between 1188 and 1184. If we get below that, look for a quick move to 1172. We have support between 1175 and 1170.
As for the Dow, a good solid rally yesterday, and the market is now 600 points off the intraday low from Friday. We would anticipate some continued buying, although possibly not at the pace since Friday’s open.