Filling Gaps?
Some open gaps are on the market’s radar screen today, particularly gaps left open from the FOMC rate-cut sessions.
This morning, S&Ps are up 3.60 at 1229.60. On the downside, we have a target at 1227, yesterday’s limit which was 1223.80 and yesterday’s low at 1222.50. Below that we have 1220.40, which would fill the Fed gap.
On the upside, we have a key area at 1231.50, then 1232.50 which would be 50% of yesterday’s range, then 1235, a key at 1239.50, and a major at 1240.50.
NASDAQ was trading at 1825.50, up 6.50. As for today, we have a first band of support from 1808 down to 1790. It will fill the FOMC gap at the bottom end of this range. Beneath this, the target becomes 1752.
Resistance is expected between 1835 and 1845. If we get above this, 1860 to 1865 is critical. The market failed in this area a few times yesterday before heading lower.
The Dow held up pretty well yesterday, settling off only 47 points. Overall, we’re still neutral on it.