Focus On Reports
S&Ps are trading at 1128, down 2.40 after yesterday’s fair value settlement at 1130.40. This morning the market has Non-Farm Payrolls (weaker than anticipated) and the ISM report to focus on.
For today, the first key area is 1130.50 to 1132. If we get above this zone, minor trading points are 1134.20 and 1135.50. Then we have a key zone between 1137.50 and 1141, which is our trading target.
On the downside, if we fail to get above the 1130.50-1132 area, we anticipate a retracement of yesterday’s final-hour rally, taking us down toward the 1120 area. Along the way, we’re going to have support between 1126.50 and 1125. Below 1125, 1123.80 to 1123 is support.
Nasdaq is trading at 1544, down 9.50. On the upside, our first resistance is 1548-1552. If we get above this, we still have scale-up resistance between 1556-1560. Above this, we have our same resistance zone from yesterday that was never tested at 1564-1568.
On the downside, the first area of support, which is where we will open, is 1546-1542. Below this, we have yesterday afternoon’s low of 1538. We will anticipate a choppy trading zone between 1538 and 1546.