Important Support
For S&P futures, the area between 873 and 871 should be important support. If this area is hit, however, the market will have to show a “good bounce” to encourage the upside.
If that occurs, S&Ps should try for 877.50-878, and above that 880-881. As mentioned in the Morning Meeting, we see a cluster of resistance from 881.30 to 882, and above that from 884.30 through 885.20.
On the downside, if S&Ps have trouble staying over 874.50 they should test the lower end of the 873-870 area and if broken the next target area is 868-867.
For Nasdaq futures, the market will have to show staying power above 1056 to interest the buyers. If that happens they should try for 1058, then 1060.50-1061. On the downside, look for a test of the low at 1050-1049, then 1047-1046.