Digging…Waiting…
In Chicago, we’re digging out from a major winter storm, while awaiting the latest news from the Sunshine State where the Presidential election continues to hang in the balance. This morning S&Ps were trading at 1399, down 4.00.
For today, 1399-1400 is a key area: both for the psycholocal importance and it was an important intraday high area last week. Then 1394.50 and 1391-1392, which is where we firmed up yesterday. Under that, 1389.50 is a key area, followed by a major at 1386.50, 1383.50 and 1380.50. Yesterday’s low was 1384.
On the upside, we have 1402.50, 1405.50, a key a 1407.50, a major at 1412. Yesterday’s high was 1412.50, missing our objective of 1413.50 by 1.00 points. Then we have 1414.50 and a critical area at 1417.50-1418.
The NASDAQ closed at 3032.50, a three-week high settle. Psychologically, it is important that we closed over the 3000 area again. The NASDAQ was the best-performing index yesterday, holding on to most of its gains despite the sell-off in the S&P and the Dow.
This morning, the NASDAQ was trading at 3008, down 25 handles. Our first key resistance area would come in between 3030 and 3050, retesting the highs from yesterday. Above this, look for a retest of 3100. We have resistance between 3090 and 3105. Above 3100 we expect a trade back up to 3150. We have resistance between 3155 and 3175.
On the downside, our first key support is between 2950 and 2975. Under 2950, we expect selling to increase to trade down to yesterday’s Globex low of 2900. Along the way, we’d expect limit down of 2932.50 to provide some short-term support.
Dow cash closed at 10,725. We have support at 10,690, 10,645, 10,625 and 10,605. Resistance on the upside is at 10,800-10,815, 10,840, 10,870 and 10,900.