Going Lower…
CPI was released this morning, higher than expected. S&Ps sold off to a session low at 1142.
We bounced a bit to 1147, which is down 5.50 points. This morning, on the way down we have 1144.50, which is a key level, then 1142 and major at 1138.50.
On the upside, we have 1150, 1152, 1158.50, which was the previous contract low, and 1162.
NASDAQ is trading at 1633, down 400. We have support between 1620 and 1610. If we get beneath this level, 1575 becomes the target.
On the resistance side, 1650 and 1680 is the first level. If we can get above this, look for a move back to 1725. 1695 to 1705 will be critical. If it can get above 1725 and settle above that level, it will take some short-term pressure off the trade.
Dow has support at 9700. Below that, we’re targeting a move toward the Asian crisis lows in the summer 1998.