Fed Focus
S&P futures are trading down 6.30 pts at 1154.20 as all eyes focus on the one-day Fed meeting tomorrow. For today, the first level of resistance is going to be 1156-1157.50. Above this we have 1159-1161, which was basically the range for our final 15 minutes of trading on Friday. Above 1160.50 is like a “light switch going on” for the upside, with the first area to be tested at 1169.50-1171.
On the downside, we have a neutral/bearish zone between 1155.50 and 1150.50. If we get below 1150.50, we think that there is a chance for some downside velocity, which will lead us down toward the 1144 level. On the way, 1148-1147 is support, and below that, 1145 to 1143.50 is support.
Nasdaq is trading down 11.50 at 1665.50. On the upside, the key area is going to be 1675 to 1680. If we get above this, we are going to look for a move to 1705.
On the downside, the first level of support is going to be 1664 to 1658. Below this, Friday’s low of 1653 comes into play. But more important will be the 1650 level. We expect active trading around this level and most likely between 1660 and 1645.
The Dow settled above 10,000, and has some stiff resistance around 10,200. We are not looking for a lot out of this index today.