Digesting
On this day after Thanksgiving, we do not actively trade. Rather, it’s a time to “digest” both the feast and the market action in anticipation of next week.
This morning, S&Ps are trading down 250 pts at 1134.50. Our first key area of support is and continues to be 1133.50 to 1131. Wednesday’s low was 1131.10. Below this zone, we could see some downside probing today, most likely stopping around the 1125-area.
On the upside, our key resistance area – which is more of a transition zone for the market – is between 1138 and 1142. If we get above this, Wednesday’s high of 1142.50, followed by a target of 1147, come into play. Some minor resistance points are 1145 and 1146.50. If the market continued upward, the key once again is the 1150 area.
Nasdaq is trading around unchanged at 1555. On the upside, again our key resistance zone is going to be 1564 to 1568. On the downside, below 1550, we have support between 1547 and 1545, and then under that 1540 is a downside pivot.