Downside Targets
S&P futures reached the downside target of 1200 and made a low at 1196.80. Currently, S&Ps are trading at 1198.
The pit is now thinning out with traders exiting for the weekend. Expect the remainder of the day to be quiet as a result.
Below the low of 1196.80, we expect some support around 1192. The downside momentum increased earlier in the day on weakness in the Dow, and in particular, talk about IBM earnings weakness.
NASDAQ is trading at 1685 after putting in a low at 1682. The downside target now is ultimately 1650. Earier, locals were heavily short on a down move, pushing the market at that time below 1700.
This trade is also thin now at mid-day. Significantly, though, it appears the bulls have been scared by the bad earnings news.