Consolidation
S&P futures saw selling run out of gas around the 857.50-support area. We have again seen consolidation on the lows of the session. Buyers have most been short covering as every bounced has failed.
As we mentioned in the Morning Meeting, below 857.50 we have support at 855 to 854 and below this would look for a trade to the psychological 850-zone.
Nasdaq has seen some light upticks off the low as we have seen a massive contraction in trading. We look for consolidation in a 10-15 handle range for the next two hours. Earlier, buyers defended our key support area between 882-880.