Down Move
S&Ps are trading down 6.50 at 1144, just above the heavily traded area from yesterday of 1145-1146.
On the downside, we have 1142, yesterday’s low of 1140.70, 1138, 1135.50, 1132.50 and a major objective at 1128.50. On the upside, we have 1146.50, 1148.50-1150.50, 1153, and 1156-1158, which was the breakout area yesterday.
Nasdaq is trading down 22 at 1596. The first key area will be the 1590-85. If we get below that, we’re looking to exceed yesterday’s low of 1576. We would look for a trade down to the 1562 level.
On the upside, above 1600, we can expect resistance between 1602 and 1606. If we get above this, look for 1615. Resistance will be found between 1614 and 1620; 1616 is unchanged.
As for the Dow, estimate cuts on GE and Boeing should add some more pressure to the Dow and to both issues. Also, remember that GE is the single largest S&P 500 component. Despite the sell-off yesterday, the Dow is above the key 9850 level. If we close below 9800, expect more selling.