Giving A Little Back
S&Ps are trading down 5.00 at 1097.70, giving back a small portion of yesterday’s large rally. On the upside, the first level is 1100. We do not expect anything orderly about the trade between 1095 and 1111. We think it will be very choppy, very volatile. On the way to 1111, we have targets at 1102-1103, and above that 1106-1107.50.
On the downside, the longer we stay below 1100, the more bearish it is. We have our first support between 1098 and 1095. If we get below this, look for a quick move to 1092, and most likely to 1088. We have support between 1091.50 and 1090.
Nasdaq continues to be the leader in this move. The first upside objective is 1500. To get to 1500, our first area of resistance is going to be 1477 to 1483. This was a heavily traded zone near the close yesterday. If we get above this, 1500 looks pretty good with resistance along the way between 1491-93, and then 1497-1503. Above 1503, we’re looking for 1520.
On the downside, if we begin to retrace some of yesterday’s move, the first critical support area is 1468 to 1462. If we get below this, 1450 should trade. We have support at 1450-47.