Higher Ground
S&Ps were able to move to higher ground overnight following yesterday’s sharp selloff after the Fed announcement. This morning, S&Ps are up 8.00 points at 1164.50. Some positive news in the semiconductor sector and a turnaround in Europe have helped our gains.
For today, on the upside we’re going to have a resistance zone between 1165.50 and 1170. In this zone should be a choppy, two-way trade. If we can get above this zone, we look for a retracement of most of yesterday’s decline, and the first target would be 1178.50.
For support, we will have a gap open. We would be looking for a choppy two-way trade down toward the 1156-level. Along the way expect support to be found between 1161.50 and 1158. This was a heavily traded zone in the final 15 minutes of trade yesterday. Look for a very choppy trade below 1158.
Nasdaq is trading higher by 30 at 1506. Key level today on the upside is going to be in the zone where we should open: between 1505 and 1515. If we get above here, look for 1528. We have strong resistance between 1528 and 1535.
The Dow closed below 10,200. This is a bearish signal for us.