Hanging On
S&Ps are holding above our key level at 849.50 and if they can sustain a trade above 851 should make another attempt at the 854-target. However, it may be tough-going with bonds still near their highs.
On the downside, below 849, S&Ps should test 847.50, and possibly 846-845.50. As we mentioned in the Morning Meeting, we see a cluster of support from 847.90 down to 843.
As for Nasdaq, there is a small trade-range between 1020 and 1030. This market will have to show conviction above or below these levels to get a better set-up. above 1027, they will likely try for 1030 again, then 1032, 1034-1034.50, and later 1036. On the downside, below 1024 they will likely go for 1022 and then 1020.