Gathering Steam
S&Ps are up 5.70 at 1198.20 this morning, gaining ground on strong performances in Europe and Asia. For today, on the upside, our first target is 1200. Above that, we have 1202.50 and a critical area just above that at 1203. If we get above that level, we have 1205.50.
On the downside, we’re opening up in a pivotal area. If we trade below 1198, the first target is 1196 and then 1193.50, which will be a key level to maintain. If we trade through that level, we have 1192.50, which should be a major support area.
Nasdaq is trading up 17 at 1672. We continue to think that 1680 is the key. Above that, look for a choppy move to 1700.
On the downside, we have a neutral zone all the way from 1680 down to 1640. Below 1640, we’re looking for 1625. To get there it should be a very choppy, two-way trade.
We remain neutral on the Dow — above 10,650 we have a bullish bias and below 10,200 we have a bearish view.