Gap Target
S&Ps traded to new session lows at 1076.30, with the leftover gap at 1075.80 on the radar screen. While there has been definite selling pressure in this market, volume flows have been light, which we expect to continue through lunch.
As we said in the Morning Meeting, below the gap-fill, we have a target at 1075. With a 30-minute close below 1075, should that occur, the downside should continue with a target of 1068.
Nasdaq traded down to its gap price of 1240, then bounced to 1245. Concerns and some weakness in the Tech issues, particularly in the semiconductors, are hurting this market.
On the upside, Nasdaq faces key resistance between 1275 and 1285.
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