Downside Targets
S&Ps manged to bounce off the lows around 857.50. On the downside, however, the target remains 852.50. As long as the market remains below 862-865, the downside should continue.
As we mentioned in the Morning Meeting, this market managed to consolidate around 900 briefly, but once we broke through that level yesterday, the downward grind took over. Also, as mentioned, keep an eye on the Dow as it has held sway over the other major indices.
Nasdaq came under pressure in the late morning, taking out the 980-area. Interestingly, the Nasdaq is the only index not to take out its lwo for the year. But tech stocks have been weak. On the downside, we have support between 977-975 then key between 968-966.