Hello, October
With the start of October – typically a down month for the market – we’ll be getting clues soon as to what kind of
trading we can expect. Tomorrow, of course, is the one-day Fed meeting.
This morning, S&P futures are down 670 at 1037. On the upside we have 1040, then 1042, 1044 and 1051.
The key for the upside is to stay above 1035-1038.
On the downside, we have 1035 and below that 1032. Below this we have key area at 1028, then 1025 and major support at 1022.50.
Nasdaq is trading 19 lower at 1156. On Friday, we had key support between 1156 and 1148. That will stay in place today. If we get below 1148, we’re looking for a move to 1140. We have support between 1141 and 1138. Below this, the target becomes 1129.
On the upside, look for 1160 to 1170 to be a kind of neutral zone, above which resistance will be found at 1172 to 1185. This should be a very choppy zone. If we can get above 1185, the first stop will be 1205.
As for the Dow, it saw some pretty good rotation buying at the end of the quarter, as did the entire market–except for Tech.