Endless Summer Ends
Today is the first day of trading after Labor Day, the official “end” of summer — or at least the low-volume, low-participation summer trade.
This morning, S&Ps are trading at 1133.50, down 1.60. For today, the first key level is 1135. Above this, we expect a move to 1145. Along the way, we have resistance between 1139 and 1140.50, and 1143 to 1145.
On the downside, below 1135 we’re looking for a retest of Thursday’s low between 1126.50 and 1125.50.
Along the way, we have support between 1130.20 and 1127.50.
Nasdaq is trading at 1463, down 9.50. Right off the bat, we think 1460 is going to be the key level. If we can hold above 1460, we think the market should make a move toward Friday’s high of 1489. Along the way, 1473-1477 is resistance. Above this, 1483 to 1487 is resistance.
On the downside, if the 1460 level fails, we expect a retest of Thursday’s low zone of 1441 and 1448. Along the way, we have support between 1452 and 1448. Friday’s low was 1445, and then we have our target zone. If we hold below that target zone, there is a strong chance that we’ll test 1400.
As for the Dow, we had another close below 10,000. The 9750 level is the downside target, and the market needs to close above 10,050 to get out of “hot water.”