Help From Overseas
S&P futures are getting a boost this morning from a strong rally in the Nikkei, which settled up nearly 5% last night. This morning, S&Ps are trading up 12.00 at 1165.50.
The ultimate upside target for this rally appears to be a zone between 1192 and 1200. This target will be turned off if we trade below 1150 at any point. On the way up, we have a band of resistance between 1170 and 1175.
On the support side, the first level is going to be 1161 to 1158.50. If we get through this, 1153 becomes the target and then the critical 1150 area.
NASDAQ is trading up 38 at 1772 — very close to Friday’s high of 1777. In addition, we opened Friday’s trade at 1770. For today, we have resistance from 1770 to 1783. If we get above this, look for a move to 1825. Along the way, we have resistance between 1805 and 1815.
On the support side, we have 1750 to 1735. Under that, look for a move back down to 1700. We have support between 1720 and 1710.
As for the Dow, a little bit of a bounce on Friday with the general market as the trade is more or less catching its breath. We expect more of the same today.