Critical Juncture
S&Ps are up 1.60 points at 1343.30, just above a key level at 1342.
The more time S&Ps spend below 1342, the more likely we are for trade down to a support zone between 1325 and 1322. To get short-term pressure off the market, we need to get above 1356 and then essentially hold the trade in the 1350s. If we break 1342, especially on a 30-minute closing basis, our first target would be 1333.
We have some light support between 1338.50 and 1338, and then a band of support between 1335 and 1333. If we break through 1333, our target of 1325-1322 comes into play. We have some light support between 1329.50 and 1328. If we fell through 1322, we still have a big band of support under this level from 1319.50 all the way down to 1312.50.
On the upside, holding above 1342, our first area of note should be 1347.50 to 1350. If we can get above this zone, 1356 becomes key. If we can trade above 1356, and then hold the trade in the 1350s, we would look for a move to 1365. We have major resistance between 1363.50 and 1366.50. Any settlement above 1360 is bullish.
NASDAQ is trading up 19.50 at 2601, and has had a very volatile overnight range with a high of 2630 and a low through yesterday’s low of 2555. For today, we have resistance between 2605 and 2615. If we can get above this level, look for a move to yesterday’s highs of 2655.
Remember, the market traded a significant amount of volume between 2650 and 2630. This area will be critical today, and we expect it to be very strong resistance on the way up.
We have support between 2530 and 2515. Limit down comes in at 2516.50. If we were to trade through this level, there is the potential to move down towards 2380 on a longer term. Along the way, 2470 to 2450 would be critical support. As we have said, any settlement below 2450 turns our on/off switch to “off” for the bulls.