Digestion
After yesterday’s Fed-induced rally and a volatile overnight session, expect the market to digest these moves and decide “where to from here?”
A wide range in S&Ps overnight, with a high of 1259.50 and a low of 1237.50. Currently, we’re at 1246.80, roughly unchanged.
As for today, on the upside we have 1249, 1252, 1255 and 1257. On the downside, we have 1244, a key at 1241.50, 1238.50, and then another key at 1236.50.
NASDAQ was limit up for a good portion of the overnight market, and has come off since then. It is currently trading at 1872, up 31.50 points. We have resistance between 1880 and 1885. If we get above this, look for the afternoon highs where resistance is found at 1898 and 1910.
On the downside, 1865 to 1860 was a heavy zone and is a neutral area today. If we get below this, 1850 should act as a pivot.
The Dow closed smack on the 200-day moving average at 10,615. It is now the best-performing index year-to-date of the major indexes and is off only 1.8% on the year. The entire band between 10,500 and 11,000 is really almost a neutral area for the Dow.
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