Consolidation…

The key feature of yesterday’s S&P trade was the consolidation in the area of 1368 to 1370, which includes the infamous Jan. 3 rate-cut high.

This morning, S&Ps were at 1383.50, up 100. For the rally to continue today, we have to stay above 1381.50.

Above that we have 1382, 1384.50, 1386.50, 1387.50 and a key area at 1391.50. On the downside, we have 1379, a key area and major support from 1374 to 1376.50, then 1370, 1368 and 1366.50.

NASDAQ was trading down 750 at 2620. Support is between 2610 and 2595. If they get below that, that will take us through yesterday’s final-hour low and lead to a move toward the testing of support between 2570 and 2550.

We have resistance between 2635 and 2650. If we can get above this zone, it signals a potential move back to 2750. Along the way to 2750, we have resistance between 2675 and 2690, and above that between 2710 and 2720.

Dow had a its highest close since October, and above all the moving averages. First target is 11,200 on the upside, and then 11,400.