Creating A Range
S&P futures are creating a trading range between 815 and 820.50. We need a sustain trade out of this area before we gain any momentum. Otherwise, expect more of a choppy, locally dominated market.
Earlier, S&Ps failed to sustain a bid above 820.50, which resulted in more selling back to the uncahgned level. Keep an eye on the Dow. If the Dow comes under pressure, look for selling in the S&Ps to accelerate.
As we said in the Morning Meeting, on the upside S&Ps face critical resistance between 824.50 and 825.50.
Nasdaq futures failed to get anything going on the downside belwo 830. Short-covering took the market off the lows to the 835-837 area. Above this 841-842 is key for more short-covering to follow.