Hanging On
With the S&Ps, like the rest of equities, battered by bad news and troubled economic outlooks, the market is trading up 11.50 at 1223.80 after Nokia had a positive earnings report. Let’s see if this market can hang on to higher levels.
On the upside, we need to get above 1224 for the market to accelerate higher. Targets above this level are 1227.50 and 1229.50.
On the downside, we have that support at 1220.50. If we get below this, our support levels are 1217.50, 1215 and 1213.50.
NASDAQ is trading up 31 at 1715. Overnight we filled the gap at 1660, making a low of 1655. The day session low was 1663. The first upside target is yesterday’s high of 1729. We have a neutral zone between 1730 and 1740. Above that we have 1753, and we have resistance between 1748 and 1755.
On the downside, if we reverse this open, the first leg of support is found between 1703 and 1700. Below this, we should get back to settlement, which was 1684. On the way to settlement, expect a very choppy trade. If we get below 1680, the odds for a strong selloff increase, and we would look for 1630. That was our target yesterday if the market took out 1660.
The Dow closed down only 36 points — about 90 points off the low of the session. Still in a neutral zone. It needs to close above 10,750 to break out to the upside, or below 10,400 to break out on the down.