Higher Opening
S&Ps are trading up 6.20 at 1135.30, opening right above a key area for the upside. Above this, we have 1137.50. The area from 1137.50 to 1141 was tested four times last week.
On the downside, we’re looking at 1132.50, 1130, 1128.50, 1124.50, which is the 2002 low and Friday’s low.
Nasdaq is trading up 17 at 1572.50. This is 24.00 pts above cash. The key today will be the 1579-1592 zone. This has been heavily traded for the past four sessions. We expect a choppy two-way trade with scale-up resistance throughout the whole area.
On the downside, if we are unable to take out the heavily traded zone from 1579-1592, look for a trade to 1565-1558. Below this, look for today’s gap to be filled at 1554.50 with a trade to Friday’s key area of 1552-1548.