Do-Or-Die
S&Ps futures are in a “do-or-die zone” at the moment. S&P futures made a low of 1371, and have since been trading between 1372 and 1375.
This is a very important level of support. If this area shores up, look for the market to move to the upside back to the 1386 area. This morning, between 1382 and 1386, we saw huge volume on both sides of the market.
If this area does not hold, look for 1368, 1365 and major area at 1362.50-1363.
With CPI tomorrow, my hunch would be that late this afternoon we could see some short-covering, which might spark a rally back to close to unchanged on the day.
The NASDAQ, meanwhile, hit limit down at 3221, with a meltdown in the second-tier stocks that we’re watching. Now at 3228.