Fear In The Market
News, including the FBI’s latest warnings on
terrorism, has helped to push this market lower. This morning, S&Ps are
down 2.50 pts at 1070.50 following a sharp sell-off late in the session on
Monday.
On the upside, the first key area is going to
be 1075. If we can get above 1075, we’ll look for 1081. If this does occur, we
expect the trade to be a very choppy move up to 1081.
For today, we view 1076 as pivotal. Beneath 1076, the first
test should be between 1066 and 1065; 1066 was the low from last week.
Nasdaq is trading down 8.00 at 1363. On the upside, the
first number is 1378. We have to get above this level for the market to begin
having some upside momentum. Above 1378, the target becomes 1403. Along the
way, 1384-87 is resistance and then 1391-92. Yesterday’s limit-down was
1391.50. Above this we have 1398-1401.
On the downside, 1370 is the downside pivot. Beneath that,
we’re looking for 1350. Support along the way is found at 1362 and 1360,
1357-55, and then 1351-49.
The Dow saw a pretty aggressive downside trade yesterday.
We do not see it abating any time soon. The market is beginning to look 9000
square in the eye.