Consolidation
Barring any major news events, we wouldn’t be surprised to see a few weeks of rangebound trading as this market consolidates following last week’s strong upmove.
This morning, S&Ps are down 7.90 at 1242.90. As could be expected, there is a large neutral zone between 1242 and 1257. Below the zone, targets are 1240.50, 1233.50, and then 1230.
NASDAQ is at 1911.50, which is limit down. For today, limit down is in a support zone between 1915 and 1900. If we get beneath this, the key area will be between 1888 and 1875.
On the resistance side we have a zone between 1935 and settlement at 1953.50. If we get above settlement, things look much better.
The Dow gave back some of its gains on Friday. As long as the Dow can keep its head above 10,450, all looks good.