Comeback?
S&Ps are trading at 1357, down 5.00. They had been down as much as 8.00 this morning, but have since rallied.
On the upside, we have 1359, 1360, (1360.50 was yesterday’s intraday low in the morning), and 1363.50, 1367.50, which we need to get above and stay above for this market to get out of immediate danger.
Most of the trading yesterday took place between 1363.50 and 1370. Other upside targets are 1360 and 1373. If we get above 1373, the market will move from a bearish mode to a netural.
On the downside, we have 1355.50, 1353.50, a key area at 1350, 1347, a key area at 1346.50 and 1341.50. The Globex low this morning was 1349.
NASDAQ was trading down 12 at 2658. Since this Monday’s close we have sold off 12%, and we are coming very close to contract lows. Specific thing to keep in mind today if we do get further selling is the number 2572, which is our low settle for the NDH.
As for trading today, we have resistance from 2675 to 2705. If we get above that, the target is 2750.
First support is 2610 to 2590. If we get below 2590, limit down will come into play at 2575. If that fails to hold, we’re looking for a move down to 2520.
As for the Dow, no change from yesterday. We still expect the range to hold between 10,500 and 11,000.