Critical Condition
S&P futures were at a critical level this morning, down 1350 points at 1304.50 and trading 19.00 points under fair value.
On the downside, we have 1300, a critical area at 1297.50, 1295.50, 1292.50, 1290.50, 1289.50, and a major area at 1285.50.
On the upside, we have 1305.50, 1307.50, 1310, 1313.50, 1315 and 1318, which was yesterday’s settlement. We need this market to get above 1325 to get out of trouble. NASDAQ is down 60 at 2350. That is 50 points below the cash, and roughly 100 points – or about 4.5% – below fair value.
What’s going to be critical is NASDAQ 100
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PowerRating) cash. We settled at 2399 in the cash. 2300 is the October 1999 intraday low. This is support that needs to hold. We are in a wide band of support between roughly 2500 and 2000 in the cash.
If this market were to break 2000, we would be at levels that we haven’t seen since 1998.
For today in the futures, we have support between 2340 and 2320. Under that, look for a move to 2280. We have support between 2288 and 2275. Remember limit down will come into play at 2315.
Resistance is at 2405 to 2420. Above that, look for 2470. We have resistance between 2460 and 2485. If we can get above 2485, we think there is a good chance for a trade up to 2550.
As for the Dow, it held up the best yesterday. Some negative news on CitiCorp should have a negative impact on the financial sector. Look for the Dow to open around 150 points lower.