Critical Support
S&Ps are down 3.20 at 1183.30, following yesterday’s selloff and now face critical support at 1181.50. If we trade below that, we have a key area at 1179.50 and a major downside objective at 1177.50.
On the upside, we are at a key level at 1183.50, then 1185 and 1190. If we trade above this level, at 1193 the chances for the upside start to improve.
NASDAQ settled below key support yesterday and is currently trading down 1.50 at 1636.50. For today, 1645 to 1655 is the first resistance zone. Any 30-minute close above this zone takes a little short-term pressure off the market and should make a run to 1685, which was our first downside target yesterday.
On the downside, we have light support between 1633 and 1628. If we get through this, we’re looking for 1610. We have support between 1615 and 1605.
As for the Dow, yesterday the banks were the main reason behind the weakness. At this point, we do not anticipate a close below 10,000 in the Dow unless we get some bad external news that the market is not factoring in now.