Due For A Rest
Given the rally that this market has staged over the past few days, it’s due for a rest. Keep in mind that, with option expiration today, we could see some volatility.
This morning, S&Ps are down 5.70 at 1253 on pretty good overnight volume of nearly 4000 contracts. A very wide range once again, with a high of 1268 and a low of 1250.50.
For today, we have a neutral zone between 1257 and 1242.
Within this neutral zone, 1250 is support. If we get under that, look for a move to the 1245-1242 area, where we have support as well.
On the upside, above 1257 the first target is 1265. We have resistance between 1261 and 1263.
NASDAQ is trading down 20.50 at 1933 on heavy volume of 3000 contracts. The market traded to limit-up last night at 1995.50, and has since reversed that. We have support between 1925 and 1915. Under this, look for 1880. Today our first limit down comes into play at 1911.50.
Resistance is between 1950 and 1960. Above that, look for yesterday’s day-session high of 1970.
As for the Dow, it closed above its 200-day moving average, and is now at 10,700. We would assume that the market will trade in this 10,500-10,900 band for a while. The longer it can hold onto the spike gains, the better.