Finding A Foothold
S&Ps at 1213, off the lows at 1211.50 and above our support zone at 1212.50 to 1209.50. Locals have been short most of the morning, and we’ve seen some broker selling as well.
Earlier, S&Ps chopped around the 1217.50 to 1214.50 area, as the market held what was then support at 1215. The market traded to a session high of 1221.50, but sellers quickly stepped in.
NASDAQ is trading at 1722, just off the lows. Earlier, this market chopped around the 1740 to 1730 area, eventually traded lower.
A move to the 1750 area produced no follow through, and the locals turned sellers, bringing this market lower.
The trade has quieted down, which is typical for the lunch hour — coupled with the fact that this is a Fed day. However, the market still favors the downside as the effects of the Merrill Lynch news are still being felt in the market.